Chicago Agriculture Commodities Finished Mixed on the Week Ended 6 July
$SOY, $WEAT, $CORN
Chicago Board of Trade (CBOT) Soybean futures rebounded at week’s end on 6 July, thanks to bargain buying amid escalating trade tensions.
The most active contract for November Soybean went up 14.5c weekly, or 1.65%, to 8.945 bu.
December Corn delivery rose 1.25c, or 0.47%, to 3.73 bu.
September Wheat delivery was up 14c, or 2.79%, to 5.1525 bu.
CBOT Soy markets traded down through the 4 July holiday shortened trading week, in anticipation of US and Chinese trade tariffs Friday.
Soybean lost some 2.00/bu in the past months since Washington threatened to resort to protectionist tariffs against China’s goods.
Despite repeated calls from US Soy farmers for alternative and constructive measures, The Trump Administration Friday implemented the levies on some $34-B worth of Chinese goods, and Beijing fought back with similar measures, including 25% tariff on US Soybean.
As the market had already digested the Bearish news, said agriculture analysts, bargain buying prompted a surge Friday in Soybean prices. But they added that such a rise will not last long amid increasing trade tensions.
CBOT Wheat closed sharply higher this week. Premium was added amid yield downgrades in French, Germany and Black Sea area due to adverse weather conditions. A rally in EU Wheat prices is putting US Gulf Wheat in a much more competitive position.
Corn futures ended the week flat to Unchanged.
Weather forecasts have indicated weeks of dryness toward the end of July, with heat to impact the heart of the US Corn Belt through the period.
The US Department of Agriculture (USDA) Friday released its latest weekly export sales report, showing 672,800 tonnes of Corn were exported Vs. the trade’s expectations between 750,000 and 1.4-M tonnes.
US Soybean export sales stood at 1.02-M tonnes, compared with the trade’s expectations between 400,000 and 1-M tonnes.
Wheat export sales were at 440,000 tonnes, within the trade’s expectations between 250,000 and 500,000 tonnes.
Have a terrific week