Chicago Agriculture Commodities Finished Lower Friday

Chicago Agriculture Commodities Finished Lower Friday


Chicago Board of Trade (CBOT) Corn, Soybean and Wheat futures closed all sharply lower on Friday as improving weather and soybean production estimates from Argentina can not support investors bet on higher crop prices.

Chicago Wheat led the losses as the most active wheat contract for May delivery lost 29.5 cents, or 5.86%, to close at 4.74 b.

Soybean for May delivery dropped 31.25 cents, or 3.04%, to close at 9.9625 bu.

May Corn delivery shed 14.25 cents, or 3.66%, to close at 3.755 bu.

Wheat prices extended losses to a 2nd straight session Friday as investors took their profits after Chicago Wheat surged to more than 5-month highs  mid-week.

The broad commodity rally since mid March is due to new Money flowing into the CBOT from large hedge funds on expectations for big Soybean losses in Argentina and Corn damage of Brazil, according to a Chicago-based agriculture research institute.

Chicago Soybeans pulled back with falling below the Key mark of $10 bu Friday as Soybean production estimates from Argentina were larger than expected.

The Argentinian Ministry of Agriculture late Thursday lowered its estimate of the 2016 Argentine Soybean crop at 57.6-M tonnes from 60.9-tonnes. Agriculture analysts noted that this estimate cooled the Bulls on potential crop losses with favorable warm/dry weather offered across all agricultural areas for the next 2 weeks.

Additionally, a stronger USD weighed on Chicago grains and Soybean on the day.

The US Dollar (.DXY) Index rose by more than 0.5% during the session. Generally, a stronger Buck can be a negative for agricultural commodities, priced in USD’s because it makes them more expensive for non-Dollar users, while a weaker USD can support $-denominated commodities.

On the week, the most active Corn contract for July delivery lost 1.7%, July Wheat rose by 1.4%, and July Soybean gained 3.3%

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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