Chicago Agriculture Commodities Finiahed Higher

Chicago Agriculture Commodities Finiahed Higher

$CORN, $WEAT, $SOYB

Chicago Board of Trade (CBOT) agriculture grains futures finished higher Tuesday as traders firmed their buying after Monday’s losses and USD’s weakens, which makes American agriculture products competitive.

The most active Corn contract for March delivery rose 2 cents, or 0.56%, to 3.5975 bu.

March wheat delivery added 6.75 cents, or 1.63%, to 4.2075 bu.

March Soybeans rose 1.75 cents, or 0.17%, to 10.245 bu.

This is partially due to speculative consolidation following Monday’s losses, and partially due to a more supportive macro environment.

The USD has extended overnight losses and is perched just above December’s low, and Crude Oil is up 0.80 bbl.

The Central US forecast has trended a bit warmer across the Southern and Central Plains through the middle of February, which will keep Winter kill stress limited or nonexistent.

Weekly US Ethanol production is expected to contract further to 302-307-M gallons, Vs. 309-M in the prior week. Ethanol stocks should grow 10-15-M gallons to levels slightly above the same week in Y 2016.

Both are rather seasonal, but analysts note energy consumption will hit a lull in the next 2-3 months. NASS posted Winter Wheat conditions from select states Monday afternoon, and the results are mixed.

Jason Roose, US Commodities agriculture grain analyst, says that it is a weather market.

“Grains are mixed today, after a weak Monday trade with improved weather in South America vs. good export inspections on Corn and Soybean. Slow producer selling will give the grains added support on breaks.” Mr. Roose said.

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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