Chicago Agriculture Commodities Finish Lower on the Week

Chicago Agriculture Commodities Finish Lower on the Week

$CORN, $WEAT, $SOYB

Chicago agriculture commodities finished lower on the week ended 22 December, with Soybean futures dropping nearly 2% on improved weather in South America.

The most active Corn contract for March delivery added 4.5c weekly, or 1.29%, to 3.52 bu.

March Wheat delivery went up 6.5c, or 1.55%, to 4.2475 bu.

January Soybean dropped 17.75c, or 1.84%, to 9.495 bu on the week.

March Corn ended higher amid the late week strength, as US export sales show signs of life following a quick and dramatic rally in South American cash Corn markets. US Gulf Corn is the cheapest in the world, so the Southside risk over the next 30 to 45 days is limited.

As for international market

Argentine soil moisture has improved slightly in the east, but widespread shortages exist in central and western crop areas. Argentine planting progress surged this week, but the harvest will not be fully completed until late July.

Wheat futures ended higher on modest fund short covering and better than expected weekly US export sales. Russian remains a dominant world Wheat exporter amid abnormal warmth, but the US Gulf market is much more competitive with EU and Australian origins.

Also, unlike prior short covering rallies, the US cash market seems to be leading the way.

Hard red Wheat at Kansas City rests at a 3-year high this week, and all cash grain prices except Corn are inching higher.

Drought continues to build across the Central US, limited rain or snow is offered to the hard red Wheat belt in the next 2 weeks and the Winter of 2017/18 looks to be marked by bouts of excessive cold.

Thin volume and limited news extended the Bearish trend, and soybean prices were lower at week’s end.

Fundamentally, US Soybean supplies are known to be larger, while the largest unknown for the market is the remainder of the South American growing season, and whether La Nina will limit rains in early Y 2018.

The US Soybean export pace remains well behind last year, but good Chinese demand was noted on this past week’s break, export sales announcements totaling 648,000 tonnes of old crop and and an additional 145,000 tonnes of new.

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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