Chicago Agriculture Commodities Finished Lower
$WEAT, $CORN, $SOYB
Chicago Board of Trade (CBOT) grains futures closed lower Monday, with Wheat futures falling for a 6th consecutive session to a 10-year low, as ample global stocks and a regulatory clamp-down from the world’s largest buyer of the grain dragged on prices.
Corn futures slid and Soybean futures also dropped. Vast worldwide supplies of grain that will only increase with the Fall harvest are weighing on markets, along with favorable weather forecasts, analysts observed.
The most active Corn contract for December delivery was down 4.25 cents, or 1.31%, to 3.2075 bu.
December Wheat delivery fell 10.5 cents, or 2.58%, to 3.97 bu.
November Soybean fell 3 cents, or 0.31%, to 9.6425 bu.
Wheat slid after Egypt, the world’s biggest Wheat importer, reinstated Sunday a controversial ban on Wheat shipments containing even the slightest amount of a common grain fungus, ergot.
The move baffled agriculture grain traders who had returned to the Egyptian market just last month when the ban was lifted.
There is a big supply and uncertainty of demand because of the bumper crop this year and the hold over supply glut.
Agriculture analysts pointed to the grain piling up, with the bumper harvest estimates from USDA and the ProFarmer Midwest Crop Tour.
The Pro Farmer newsletter Friday predicted that US average Corn yields in Y 2016 will be 170.2 BPA (bushels per acre), or enough to produce a record-large 14.728-B bu crop.
Pro Farmer projected Soybean production at a record 4.093-B bu, with an average yield of 49.3 BPA. Its estimates topped the USDA’s 12 August outlook for a 4.060-B bu crop with a yield of 48.9 BPA.
After the CBOT close Monday, the USDA rated 75% of the US Corn crop in good to excellent condition, unchanged from a week earlier, and 73% of the Soybean crop as good to excellent, +72% the prior week. Both figures are historic highs.
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