Chicago Agriculture Commodities Finished Lower

Chicago Agriculture Commodities Finished Lower

$CORN, $WEAT, $SOYB

Chicago Board of Trade (CBOT) agriculture grain futures finished lower Monday on a surging USD. and widespread selling in agriculture markets.

The most active Corn contract for December delivery fell 3 cents, or 0.88%, to 3.3725 bu.

December Wheat delivery dropped 9 cents, or 2.23%, to 3.94 bu.

January Soybean fell 1.75 cents, or 0.18%, to 9.8425 bu.

Wheat prices fell to a 2-month low, dropping below the psych mark at 4.00 bu due to strength in the USD, which can dampen export demand for US crops like Wheat by making them more expensive for overseas importers.

The USD rose Vs a basket of currencies as the risk of faster inflation and wider budget deficits sent US T-Bond yields higher. The Buck has been moving higher since Donald Trump was elected US President last week triggering a massive sell-off in Treasuries and rotation into equities.

Lower Wheat futures pressured the Corn market, with concerns growing that inexpensive Wheat prices would edge out Corn in animal feed rations.

Corn prices fell to a 1 month low, under further pressure from the US harvest, which is drawing to a close. US farmers are nearly done collecting what is forecast to be the biggest-ever crop, adding to already ample US and global supplies of the grain.

Soybean prices also dropped to a 1-month low, pressured in part by lower prices for Soybean Oil, a vegetable oil made from the crop.

Grain traders are on the lookout for signs of crop problems in South America, which could boost prices for the Oilseeds, though improving conditions in some regions are allowing growers there to get crops planted, agriculture analysts said.

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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