Chicago Agriculture Commodities Finished Mixed Friday
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures finished mixed with Soybean futures falling to a 5-month lows after federal crop forecasters said Spring plantings would reach an all-time high above traders’ expectations.
The most active Corn contract for May delivery rose 6.75 cents, or 1.89%, to 3.6425 bu.
May Wheat delivery added 5.5 cents, or 1.31% to 4.265 bu.
May Soybean dropped 17 cents, or 1.77%, to 9.46 bu.
Farmers in Plains states, the Midwest and South are shifting to plant Soybean, instead of Corn and Wheat, as the crop provides 1 of the few bright spots in a gloomy US agriculture economy.
The US Department of Agriculture (USDA) estimated they will increase Soybean plantings by 7% from last year to 89.5-M acres, while reducing corn plantings by 4% to 90% acres. The agency issued the forecasts after surveying about 83,000 farmers about their plans.
Wheat and Corn futures rose, recovering from recent multi-week lows, after the USDA said plantings would be slightly smaller than agriculture analysts expected.
All the markets came under pressure from large supplies held in reserve, following recent bin-busting harvests. Low prices for crops have encouraged farmers to keep them in storage, rather than selling them to processors or livestock operations.
The USDA said Soybean in storage totaled nearly 1.74 bu, on 1 March, + 13% from a year ago. Corn stocks were up 10% at 8.62-B, and Wheat stocks were up 21% at 1.66-B bu.
Global supplies have also swelled, with South American countries harvesting bumper crops. Farm consultancy Agroconsult Thursday raised its estimate for Brazil’s 2016-17 Soybean crop to a record 113.3-M tonnes.
With surpluses in place, poor weather will need to disrupt US Spring plantings or crop development in the Summer to spark strong gains in the futures markets, traders said.
The USDA data “still says we have too much grain,” said the President of Iowa-based broker US Commodities.