Chicago Agriculture Commodities Finished Lower on the Week

Chicago Agriculture Commodities Finished Lower on the Week


Chicago agriculture commodities finished lower or week which ended 15 December, amid to ample inventories and improving weather predictions in South America.

On the week

The most active Corn contract for March delivery fell 5.25 U.S. cents, or 1.49%, to 3.475 bu.

March Wheat delivery edged down 0.75 cent, or 0.18%, to 4.1825 bu.

January Soybean dove 22.5 cents, or 2.27%, to 9.6725 bu.

All the 3 CBOT commodities saw a 2nd consecutive Bearish week.

The US Department of Agriculture (USDA) released its monthly world agricultural supply and demand estimates report early last week.

According to the newly adjusted estimates MY 2017/18 US Wheat end stocks were increased by 25-M bu to 960-M, while the world Wheat end stocks were forecast to rise 1-M tonnes to a record 268.4 tonness.

The US Soybean end stocks were raised 20-M bu to 445-M, while world Soybean end stocks were estimated to rise to a record 98.3-M tonnes.

Although the USDA raised Ethanol demand for Corn by 50-M bu, the increase failed to sufficiently support CBOT Corn futures.

Weather forecasts for South America predicted a wetter pattern shift in Argentina in 2-H of December, and rain showers are indeed coming to relieve the dryness in the Corn and Soybean belts.

Traders believe that rainfall will prevent steep yield losses on early planted Corn there, bringing extra pressure on CBOT Corn futures.

CBOT Soybean suffered more than 2% losses on the week over the weather pattern shift in South America and low US export sales.

Rains over the next 2 weeks will be Key for finishing up planting, but the entire growing season is still ahead and it’s too early to predict the upcoming yields.

CBOT Wheat futures inched lower following the USDA’s downward revision to US export sales. Agriculture analysts maintain a Neutral outlook through this coming Winter.

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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