Chicago Agriculture Commodities Finished Higher

Chicago Agriculture Commodities Finished Higher

$CORN, $WEAT, $SOYB

Chicago Board of Trade (CBOT) agriculture grains saw an upbeat week for the grains futures, but the prices continues sat seasonal lows.

During the trading week which ended on 1 September, the most active Corn contract for December delivery rose 1.75 cents, or 0.5%, to 3.5525 bu.

Following losses for 4 sessions running, Corn prices jumped Thursday by 3.55%. Agriculture analysts contributed the sharp rally to short-covering by managed funds.

Many investors maintain a neutral outlook for the Corn, with bio-fuel margins soaring, profitability returning to much of the livestock sector.

The US Department of Agriculture (USDA) will release its yield estimate in 2 weeks suggesting now the national Corn yield lies closer to 166 BPA, adding that any recovery to 3.65-3.75 for December delivery will offer the next selling opportunity.

Wheat futures ended the week steady to higher in Chicago.

The most active Wheat contract for December delivery rose 3.5 cents, or 0.80%, to 4.3875 bu.

Canada’s August crop report, which estimates the 2017 Canadian wheat crop at 25.5-M tonnes, or about 20% less than the prior year, pushed the CBOT Wheat futures higher since last Thursday.

European Wheat also rebounded following the rise in Chicago in response to the low estimates for the Canadian Wheat crop.

Still, the current prices of CBOT stand at a seasonal bottom and agriculture analysts believe some sort of rally effort is expected heading into December.

World’s major wheat importers are responding to the relatively low prices and a rising ship lineup in Russia has made it evident.

Soybean continued to recover in another week of slow trade, with support from building export demand and short-covering by managed funds.

The most active Soybean contract for November delivery went up 5 cents, or 0.53%, to 9.495 bu.

New Soybean sales remain low, though some analysts suggest the sales do not reflect real global demand, especially from China.

The US Department of Agriculture forecasts China’s 2017-2018 imports to increase by 7.5 tonnes to 94-M tonnes, which means an average of 1.8-M tonnes of Soybean imports weekly. As long as no trade war breaks out between the 2 economic giants, US Soybean will get enough support from the Chinese market.

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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