Chicago Agriculture Commodities Finished Lower

Chicago Agriculture Commodities Finished Lower

$CORN, $WEAT, $SOYB

Chicago Board of Trade (CBOT) agriculture grains futures finished lower Monday with Wheat futures falling over 1% on forecasts for improving weather for crop development in key US growing areas.

The most active Corn contract for May delivery fell 4 cent, or 1.09%, to 3.635 bu.

May Wheat delivery dropped 6 cent, or 1.38%, to 4.3025 bu.

May Soybean fell 0.5 cents, or 0.05%, to 9.995 bu.

Wheat futures traded lower after the USD’s drop stalled.

The USD had been declining since last week when the Fed raised rates, but seemed less hawkish than many analysts expected. A weaker Buck boosts spending power for overseas buyers of US products including grains and oilseeds. That, in turn, spurred some buying of agriculture grain contracts on speculation demand for US supplies would increase.

The USD, however, failed to breach a Key technical mark Monday, which seemingly underpinned its value. The Buck is up 0.1% late in the day against a basket of its global counterparts.

Investors reduced their net-long positions, or bets on higher prices, in hard-red Wheat futures to 25,290 contracts from 35,306 a week earlier, according to data from the Commodity Futures Trading Commission(CFTC). Soft-red Wheat net-shorts rose to 110,093 contracts, up from 65,521, the CFTC said.

The most disappointing price session today came in the Wheat market. On forecast some rain appear in drier parts of the great plains by the end of the month, maybe the first part of April.

Expectations of a massive crop in South America cutting into export demand for US Soybean in the coming weeks limited the gains in Soybean.

Brazil’s Abiove Soy industry association pegged the country’s Soybean crop, which is being harvested, at 107.3-M tonnes, up from its February forecast of 104.6-M tonnes. Brazil’s Soy exports were seen at 59.8-M tonnes, 1.1-M tonnes larger than Abiove’s prior outlook.

Stay tuned…

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