Chicago Agriculture Commodities Finished Lower Last Week
$SOY, $WEAT, $CORN
Chicago Board of Trade (CBOT) agriculture commodities finished more than 1% lower in the week ending 22 June on massive selling triggered by escalating trade tensions.
The most active contract for July Soybeans were down 11c weekly, or 1.21%, to 8.945 bu.
July Corn delivery fell 4c, or 1.1%, to 3.5725 bu.
July Wheat delivery was down 8.25c, or 1.65%, to 4.9125 bu.
Trade disputes between the United States and China continued to pressure the Soybean futures, pushing the price to the lowest level since March 2016.
CBOT brokers reported that funds, now net Short Soybean, sold 12,000 contracts of Soybeans last Tuesday alone.
Although Soybean futures found support in late week trading as bargain hunters snapped up cheap supplies and contracts, the gains up to 15c Bu Friday failed to offset the losses in the prior sessions.
In its latest weekly crop progress report, the US Department of Agriculture (USDA) rated 73% of Soybean crop condition as good/excellent, 1 pt below a week ago but well over the 67% from a year ago.
CBOT Wheat, which had suffered big losses in the prior week, rebounded for 3 sessions running last week due to bargain buying and declining crop prospects in Russia Black Sea and Australia. However, profit taking dragged down its prices Friday.
Eastern Ukraine and southern Russia have seen a dry Spring and early Summer. Crops there are expected to be impacted by excessive heat over the next 10 days. Moreover, spring Wheat planted area in Russia is reportedly at record low.
The US winter Wheat harvest so far has rolled along smoothly, and USDA reported that 78% of the US spring Wheat is rated as good/excellent, compared to 70% a week ago.
US Wheat export potential will be the best in years, according to observers.
CBOT corn fell modestly over the week as Mexico announced tariffs on U.S. agricultural exports. India, Turkey and EU are also implementing tariffs in retaliation against US protectionist measures.
US export sales of its agricultural commodities face uncertainty if Washington does not move torepair relations with its Key trade partners.
Have a terrific week.
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