Chicago Agriculture Commodities Finished Lower
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures finished lower Thursday with Soybean futures hitting a 2-month low, pressured by rising government forecasts for a record-large Brazilian Soybean harvest.
Corn and Wheat followed Soybean lower.
The most active Corn contract for May delivery fell 5.25 cent, or 1.41%, to 3.67 bu.
May Wheat delivery fell 3 cents, or 0.67%, to 4.44 bu.
May Soybean dropped 10.75 cents, or 1.04%, to 10.11 bu.
The US Department of Agriculture (USDA) in a monthly supply/demand report hiked its forecast of Brazil’s MY 2016/17 Soybean harvest to a record 108-M tonnes, from 104-M in February.
The USDA also cut its estimate of U.S. 2016/17 soybean exports, citing competition from the big Brazilian harvest, and consequently raised its forecast of U.S. soy ending stocks to 435 million bushels.
Most analysts are not surprised that the report came out as market-negative.
A agriculture grain analyst, says that the report showed the same old story for the grain markets, more production and more demand, but more production continues to offset that increasing demand.
“This leaves the grain markets stuck in the same old ranges, or maybe lower ranges. We do think producers and traders will be hard-pressed to build large sales or short positions before the US growing season, but if you are keeping score, the cushion for yield adversity just got a little softer with these widespread production increases,” he says.
The PRICE Futures Group’s senior market grain analyst, says that the big increases in Brazil production appear to be the headlines for the report.
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