Chicago Agriculture Commodities Finished Lower Last Week
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture commodities finished lower on the week ended 23 March with Soybean futures falling over 2% on worries about trade tensions between the US and China.
The most active Corn contract for May delivery fell 5.5c weekly, or 1.44%, to 3.7725 bu.
May Wheat delivery went down 7.5c, or 1.6%, to 4.6025 bu.
May Soybean dropped 21.25c, or 2.02%, to 10.2825 bu, on the week.
Although it has corrected some 20c off mid-March’s high last week, Corn futures fell another 5.5c. This is due to fund liquidation.
Wheat futures fell sharply for a 2nd week running, due to early-week rainfall in Kansas and the weakness in EU and Black Sea cash prices.
Currencies in major exporting countries, including Russia, Australia and Canada, have fallen from recent highs, which places yet more burden on the US to boost its share of world trade.
It was a wild week of trade in the CBOT Soy market that left Soybean lower while Soymeal ended higher on a strong late week rally. Fund liquidation took markets sharply lower at the start of the week, and prices stayed under pressure into Friday.
Concern over US and China Soybean trade tensions resulted in a deep late week sell off, which uncovered end user demand in Soymeal market.
Argentine crop ratings continue to deteriorate and world Soymeal traders are worried over where supplies will be sourced.
The US Department of Agriculture (USDA) estimates that Argentine farmers are holding 70% of last year’s crop, but with yields expected to fall 30-40% below trend, producers are still holding tight to last year’s stocks.
Have a terrific week.