Chicago Agriculture Commodities Finished Mixed on the Week

Chicago Agriculture Commodities Finished Mixed on the Week

Chicago Agriculture Commodities Finished Mixed on the Week

$SOYB, $CORN, $WEAT

Chicago Board of Trade (CBOT) agriculture commodities finished mixed on the week which ended 18 May, with Soybean futures falling 0.47% on precieved trade tensions between China and the United States.

The most active Corn contract for July delivery rose 6c weekly, or 1.51%, to 4.025 bu.

July Wheat delivery added 11.75c, or 2.32%, to 5.1825 bu.

July Soybean went down 4.75c, or 0.47%, to 9.985 bu on the week.

Corn futures last week ended higher on competing fundamental input. There’s little doubt that the US Department of Agriculture(USDA) & Brazil’s CONAB are too high by 3-5-M tonnes on Brazil’s Y 2018 harvest.

The US exports continue to exceed the pace needed to meet the USDA’s target. Analysts’ climate work suggests there’s an elevated risk of Black Sea dryness this Summer. China looks to boost Sorghum demand moving forward.

But the lack of agreement on NAFTA will keep trade concern intact, particularly amid rising prices and fund length.

Wheat futures ended the week higher as more attention is being paid to ongoing and severe dryness in Australia with as cumulative rainfall in Ukraine and Russia is down sharply on recent years. Wheat needs a weather problem to score new highs.

It is premature to adjust balance sheets and the world trade matrix until more known about June weather. Major price moves now hinge almost solely on non US weather in June, and there is a growing body of evidence that suggests dryness there may be lasting.

However, traders should be mindful that so far there’s been no material boost in US demand. Amid improving Plains weather, US end stocks could exceed 1.0-B bu without ongoing weather issues in Ukraine and Russia.

Soybean fell on liquidation and extended losses into the weekend on Chinese cancellations of imports of US Soybean. The Argentine drought has been fully priced and the market is struggling to deal with record large US Soybeans stocks.

Large fund length Soybean and Soymeal weighed heavy on late week trade.

It was a good week for planting progress, but the gains were again limited in the Northern Midwest and Plains states while producers in the Central Midwest were able to work around the rains.

Have a terrific week.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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