Chicago Agricultural Commodities Fall Across The Board

Posted by: : Paul EbelingPosted on: July 8, 2014 Chicago Agricultural Commodities Fall Across The Board

Chicago Agricultural Commodities Fall Across The Board

Chicago agricultural commodities dropped across the board Monday, led by Wheat.

The most active Corn contract for Dec delivery dropped 9 cents, or 2.17%, to close at 4.0625 bu.

Sept Wheat lost 22.75 cents, or 3.93%, to close at 5. 5675 bu.

Nov Soybeans fell 8 cents, or 0.71%, to close at 11.255 bu.

Favorable weather forecast for Central US and the world along with liquidation by funds continued to add pressure on grains.

Under that pressure, Corn and Wheat prices fell to 4 yr lows Monday. With prospect for record large US Corn production and an abundance of world Wheat ahead, funds were noticeable sellers.

Market analysts hold that unless there is an immediate change in US, or world weather patterns, additional selling is expected, and the next Southside price target for Dec Corn will be 3.90.

Soybean dropped Monday on active profit taking. End users and exporters are not showing any willingness to buy old crop Soybean supplies.

US Department of Agriculture (USDA) reported that for the wk ending 3 July, US exported 42.5-M bu of Corn, 2. 2-M bu of Soybean, and 15.3-M bu of Wheat. All grain exports fell below trade expectations and were considered Bearish.

The USDA also announced export of 347,000 tonnes of new crop US Soybean to China. To date, US MY.2014-2015 Soybean sales to China are estimated at 6.7-M tonnes, about 3-M onnes lower than last year.

USDA is scheduled to update its supply and demand report on 11 July following USDA stocks and seeding report last week. It is expected that the report will highlight record large US Y 2014 Soybean seeding and reduce Corn feeding during Q-3.

Weather forecast for Central US remains favorable with scattered showers and cooler than normal temperatures into late July. US crop condition ratings are expected to rise for both Corn and Soybeans into 21 July.

Stay tuned…

HeffX-LTN

Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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