Chicago Agriculture Commodities Finished Lower
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures finished lower Thursday, retreating from early strength on profit-taking after each market set multi-month highs.
The most active Corn contract for March delivery fell 5.25 cents, or 1.39%, to 3.735 bu.
March Wheat delivery fell 7 cents, or 1.54%, to 4.4775 bu.
March Soybean dropped 17.5 cents, or 1.65%, to 10.4375 bu.
Thursday’s weekly export sales report showed better than expected exports in all commodities. It’s no surprise the markets are lower with the volatility in the USD the past few weeks, stepped up producer selling and improved weather in South America with Soybean demand starting to shift to Brazil.
Funds have been pouring into the Corn market, encouraged by recent demand from exporters and Ethanol producers, along with expectations of a drop in US seedings this Spring.
Exchange data showed open interest in CBOT Corn futures rose by more than 53,000 contracts Wednesday as prices rose, an indication of fresh longs, positions.
Concern that the market may be top-heavy appeared to trigger a sell-off, with the US Commodity Futures Trading Commission (CFTC) set to release its weekly Commitments of Traders report Friday.
Wheat got an early boost when the US Agriculture Department (USAG) reported export sales of US old-crop Wheat in the latest week at 569,100 tonnes, above trade expectations for 300,000 to 500,000 tonnes.
A weakening USD, which makes US exports more competitive on the export market, lent early support. Wheat is typically the agriculture commodity most sensitive to currency swings, but, Wheat turned down and closed below the prior day’s low.
Have a terrific weekend.
Latest posts by Paul Ebeling (see all)
- France: Le Pen Demands Border Controls After London Terror Attack - March 23, 2017
- Key Stock Indexes, Crude, Gold & Silver Markets Briefing - March 23, 2017
- Wall Street’s Top Analysts Upgrades, Downgrades & Initiations - March 23, 2017