Chicago Agriculture Commodities Finished Lower
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures close lower Thursday with Soybean futures falling to a 6-wk low on expectations for a big South American harvest and an expansion in US plantings this Spring.
Corn futures fell on chart-based selling while Wheat posted modest declines.
The most active Corn contract for May delivery fell 5.75 cent, or 1.52%, to 3.725 bu.
May Wheat delivery fell 2.5 cents, or 0.55%, to 4.535 bu.
May Soybean fell 11 cents, or 1.06%, to 10.225 bu.
Multiple factors are pressuring the agriculture grain markets.
“With larger acres projected to be planted based on USDA government projections, improving South America corn and bean yields, and with a South Korea corn cancellation from their export lineup, U.S. prices may be overvalued with Brazil and Argentina competing for market share,” Roose says.
Soybeans fell after the US Department of Agriculture (USDA) at its annual outlook conference projected US Soybean plantings for Y 2017 at 88.0-M acres, a record high if realized.
South American farmers are expected to produce a massive crop, with the harvest already well under way in Brazil.
Agroconsult, a Brazilian consultancy, Wednesday raised its forecast for the country’s MY 2016/17 Soybean crop to 107.8-M tonnes, up from its 8 February estimate of 105.3-M tonnes.
Commodity funds recently shifted from a net short position in CBOT Corn futures to a net Long, leaving the market vulnerable to Long liquidation.