Chicago Agriculture Commodities Finished Lower on the Week
$SOY, $WEAT, $CORN
Chicago Board of Trade (CBOT) agriculture commodities closed lower on the week ended 1 June, with Corn futures dropping over 3% as investors booked profits.
The most active Corn contract for July delivery fell 14.5c weekly, or 3.57%, to 3.915 bu.
July Wheat delivery dropped 19.75c, or 3.64%, to 5.2325 bu.
July Soybean fell 20.25c, or 1.94%, to 10.2125 bu on the week.
CBOT Corn futures plunged on profit taking and some renewed global trade concern.
World weather patterns are becoming more concerning.
It remains that very little rain will fall across the Black Sea Corn Belt into mid-June. Net declines in soil moisture will be featured across the United States on extreme heat. Analysts expect soil moisture loss to continue through the entirety of June.
Wheat futures fell nearly 20c driven by Spring contracts in Minneapolis. Needed rain will fall across much of the Canadian Prairies. Early Hard Red Wheat yield reports have been a bit better than expected, and long liquidation occurred late in the week.
Black Sea weather remains Key and no improvement is indicated there into the middle part of June. Just 15 to 50% of normal rain has fallen in Ukraine and Southwest Russia in the past 45 days.
Already major exporter stocks are forecast to fall.
New crop Russian Wheat is offered this weekend at $202 to 204/tonne, Vs $182 last year, reflecting a tightening world Wheat balance sheet.
New highs will be found this Summer if Black Sea and Australian weather patterns fail to change by the opening days of July.
Soybean were lower at the end of the Memorial Day shortened week in the US. The announcement of US tariffs on steel and aluminium imports from the European Union, Canada and Mexico sent the market lower on trade retaliation concern.
US Soybean planting progress through Sunday is expected to reach or surpass 90%, while the US Department of Agriculture is expected to report initial crop condition ratings.
Based on strong US Corn ratings, initial soybean good and excellent ratings are expected to also be high. A few state reports were available last week which showed 80% of the Illinois crop and 74% of the Indiana crop were rated as good or excellent.
Have a terrific week.
Latest posts by Paul Ebeling (see all)
- Spreading Virus Spurs Rush to Buy Gold - January 27, 2020
- President Trump’s Economy is the Best in 20 Years - January 27, 2020
- The Power of Naps: The Benefits of Napping We Can Learn From Da Vinci - January 27, 2020