Chicago Agriculture Commodities Finished Higher

Chicago Agriculture Commodities Finished Higher

$CORN, $WEAT, $SOYB

Chicago Board of Trade (CBOT) agriculture grains futures finished higher Thursday on technical buying and strong weekly export sales.

The most active Corn contract for December delivery rose 3.5 cents, or 1.03%, to 3.42 bu.

December Wheat delivery added 6 cents, or 1.51%, to 4.03 bu.

January Soybean rose 3.75 cents, or 0.38%, to 9.895 bu.

Wheat firmed after private analytics firm lowered its estimate of US Winter Wheat plantings for harvest in 2017 to 33.761-M acres from 35.421-M, trade sources said.

The firm projected US all-Wheat plantings for MY 2017 at 47.265-M acres, they said, which if realized would be the fewest in US Department of Agriculture (USDA) records dating to Y 1919.

Commodity funds hold a large net short position in CBOT Wheat, leaving the market vulnerable to bouts of short-covering.

Also, the USDA reported export sales of US Wheat in the week to 10 November at 598,400 tonnes, at the high end of trade expectations for 400,000 to 600,000 tonnes.

Corn firmed on strong export demand in spite of a surge in the USD, which tends to make US grains less attractive to those holding other currencies.

The USDA reported export sales of US Corn in the week to 10 November at 1,661,000 tonnes, topping a range of trade expectations for 900,000 to 1.2-M tonnes.

In addition, the USDA said private exporters in the last day sold 106,200 tonnes of Corn to unknown destinations for delivery in MY 2016/17.

Soybean closed modestly higher following the firm trend in agriculture grains. Both Corn and Soybean drew support from ideas that farmer selling of both crops is slowing as the US harvest winds down.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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