Chicago Agriculture Commodities Finished Mixed

Chicago Agriculture Commodities Finished Mixed

$SOYB, $CORN, $WEAT

Chicago Board of Trade (CBOT) agriculture grains futures close mixed Thursday with Soybean futures tumbling as investors shrug off continued demand from Asian market and liquidate positions amid a record crop.

The most active Corn contract for March delivery fell 4.5 cents, or 1.26%, to 3.535 bu.

March Wheat delivery added 7.25 cents, or 1.81%, to 4.0825 bu.

January Soybean dropped 22 cents, or 2.1%, to 10.27 bu.

US President-elect Donald Trump’s nomination of Oklahoma Attorney General Scott Pruitt to run the nation’s Environmental Protection Agency (EPA) sparked worries of reduced support for Corn-based Ethanol and Soy-based bio-diesel. US renewable fuel credits fell sharply following the EPA news.

Commodity funds were net sellers of 15,000 Soybean contracts, agriculture traders estimated.

Brazil’s government crop supply agency estimated the country’s Soybean harvest at a record 102.45-M tonnes. Dry parts of Argentina may see rains within the next 2 weeks, meteorologists said.

Wheat rose after Saudi Arabia said it was seeking global offers for 715,000 tonnes of hard Wheat for delivery between 1 February and 10 April.

India scrapped its 10% Wheat import duty Thursday after 2 years of drought depleted stocks and raised prices. Traders said the move could lift import purchases to the highest in at least 10 years.

The US Department of Agriculture (USDA) Friday is expected to boost supply expectations for Brazil and Argentina Soybean production and narrowly reduce US Soybean ending stocks, according to an agriculture analyst poll.

Commerzbank analysts in a report said supplies of Key agriculture products including Soybean, Corn and Wheat are “set to remain comfortable in Y 2017, meaning limited potential for prices to recover.”

The USDA has projected production of 4.36-B bu of Soybean on yields of 52.5 BPA. Corn output is pegged at 15.2-B bu on yields of 175.3 BPA. All of those figures are records, according to USDA data.

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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