Chicago Agriculture Commodities Finished Mixed Friday

Chicago Agriculture Commodities Finished Mixed Friday

$SOYB, $CORN, $WEAT

Chicago Board of Trade (CBOT) agriculture grain futures settled mixed Friday, with Soybean rising on technical buying and positioning ahead of options expiration, despite pressure from the harvest of a record-large US Soybean crop and a strengthening USD.

The most active Corn contract for December delivery rose 1.5 cents, or 0.43%, to 3.525 bu.

December Wheat delivery dropped 2.5 cents, or 0.6%, to 4.145 bu.

November Soybean added 7.5 cents, or 0.77%, to 9.83 bu.

Soybean climbed as traders positioned for the expiration of CBOT November options at the end of the session. Traders noted heavy open interest in Puts and Calls at the 10/bu struck price, which was acting as a magnet for futures prices.

The rally in Soybeans was slowed by the strength in the USD, which makes US goods less competitive on the world market, and by expectations of heavy farmer selling at the weekend.

The US Department of Agriculture (USDA) said the US Soybean harvest was 62% complete as of 16 October, while the Corn harvest was 46% finished.

On the week

The November Soybean contract was on track to rise about 2%, its 3rd straight weekly advance amid strong export demand.

December Corn was down about 0.4% for the week

December Wheat was down about 1.5%.

Corn futures firmed Friday on bargain-buying a day after the December contract fell 1.8% in a broad-based sell-off in commodities. But expectations for harvest-related selling, along with spillover weakness from Wheat, capped the upward momentum.

The Wheat market continues to struggle with large US and worldwide stocks, agriculture analysts say.

Have a terrific week.

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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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