Chicago Agriculture Commodities Finished Mixed on the Week
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture commodities finished mixed on the week which ended 29 March, with the Corn and Soybean prices soaring by double digits amid lowered planting expectations.
During the shortened trading week due to the Easter holiday, the most active Corn contract for May delivery rose 10.5c, or 2.78%, to 3.8775 bu.
May Wheat delivery lost 9.25c weekly, or 2.01%, to 4.51 bu.
May Soybean went up 16.5c weekly, or 1.60%, to 10.4475 bu.
To many agriculture analysts’ surprise, Thursday, the USDA lowered the prospective planting outlook for Corn and Soybean, contradicting expectations of traders.
The USDA said in the report that Corn planted area for all purposes in Y 2018 is estimated at 88-M acres, down 2% or 2.14-M acres from last year.
For Soybean, planted area for Y 2018 is estimated at 89.0-M acres, off 1% from last year.
The acreage declines prompted 2 – 4% rise of Corn and Soybean prices before they settled Thursday.
The market trend of Soybeans is more complicated when taking the trade disputes between the United States and China into consideration.
Traders have been following the trade developments closely with the hope that negotiations between the 2 economic powers could solve their disputes and avoid a trade war which might also hurt the US agricultural sector.
Last week, CBOT Wheat saw a 2% loss due to the rainfall in the mid-south plains and increased planting estimates.
Rain fell in Kansas, Oklahoma and Texas, expected to ease the dryness and improve Wheat conditions there.
The USDA planting estimates released Thursday reported a 3% increase for all Wheat crops, thus further dragging down CBOT Wheat prices, which have so far suffered losses for 4 weeks running.
Have a terrific week.