Chicago Agriculture Commodities Finished Lower Friday
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) grains futures finished lower Friday on reports of big harvest yields and heavy farmer sales on the cash market.
The most active Corn contract for December delivery fell 0.25 cents, or 0.07%, to 3.365 bu.
December Wheat delivery dropped 0.75 cents, or 0.18%, to 4.0475 bu.
November Soybean fell 21.5 cents, or 2.2%, to 9.55 bu.
Soybean prices sank more than 2%, amid stronger-than-expected yield reports from farmers in the US Midwest. The US Department of Agriculture (USDA) earlier this month estimated that the average US Soybean yield would come in at 50.6 BPA, smashing last year’s record of 48 BPA.
As the harvest progresses, farmers are turning up unexpectedly high yields, leading some analysts to project the government next month could boost its guess for US Soybean yields to as high as 52 BPA (bushels per acre), likely making for an ever bigger crop.
Wheat futures weakened as agriculture grain traders said ample global supplies were likely to blunt the impact of India’s decision to slash its import tax on the grain.
Corn, also facing pressure from the ongoing harvest, was down slightly.
The Indian government Friday lowered the Wheat import tax to 10 from 25% as part of its efforts to curb food inflation.
Wheat output in India, the world’s 2nd-biggest producer, has fallen well below the peak of MY 2014/15, reducing stocks to the lowest level in nearly a decade and pushing domestic prices close to record highs.
But a strong USD and ample global supplies were likely to limit the pick-up in demand for US Wheat on the export market, keeping the gains in wheat in check, traders said.
Losses in Corn were kept in check by end-of-week Short-covering as well as some technical support. Buyers stepped into the market when the December contract hit its 40-Day MA.
Corn markets also faced price pressure from Friday’s announcement by China that it was provisionally putting anti-dumping duties on US distillers’ dried grains, a by-product of Corn ethanol used by feed mills as a substitute for Corn and Soymeal.
Have a terrific week
Latest posts by Paul Ebeling (see all)
- Roman Forum Find Could be Shrine to Rome’s Founder, Romulus - February 22, 2020
- Secret Beaches - February 21, 2020
- Some of the Things That Make People Fat - February 21, 2020