Chicago Agriculture Commodities Finished Mixed
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture commodities finished mixed on the week ended on 2 February with weather conditions and profit-taking being the 2 Key factors to impact on their prices.
The most active Corn contract for March delivery rose 5c weekly, or 1.4% to 3.615 bu.
March Wheat delivery went up 5.75c, or 1.3%, to 4.4675 bu.
March Soybean fell 6.75c, or 0.68%, to 9.7875 bu
Earlier, CBOT Wheat prices were pushed up more than 16c limited precipitation chances in the US plains.
According to the US Department of Agriculture (USDA), only 14% of the crop conditions in Kansas, the US biggest winter Wheat grower, was rated good or excellent. About 10% was rated very poor, with 34% being rated poor and 42% fair.
The monthly crop reports released at the end of January reflected the damage that cold and dry weather has inflicted on US plains Wheat.
After the Wheat prices reached 4 month highs, profit-taking prompted massive selling, which led to 3 sessions running of losses.
Forecasts for another round of snowfall early this week in the US plains offered additional pressure on the Wheat futures, as a protection layer for winter Wheat plants can help resist winter chill and boost crop yields.
Still, CBOT Wheat futures managed to settle in the positive territory over the week.
Soybean finished lower on technical selling and wetter weather forecasts for Argentina. Producers were big sellers over the early rally last week, when prices briefly above 10.00 bu.
When funds joined in as extended weather forecasts showed hints of rain in Argentina, Soybean prices felt the pressure.
CBOT Corn ended higher, driven by better-than-expected US export sales and long-time drought in Argentina.
There’s a better chance of rainfall in Argentina in the next 2 weeks, but this will hardly change the longer term trend in soil moisture depletion, according to agriculture analysts in Chicago.
Many market observers see a potential recovery in the weak USD, supported by strong US employment and wage data.
A further decline in the US stock market following the strong rally will probably make investors look for alternatives. These factors cannot be ignored as they also impact on the CBOT futures.