Chicago Agriculture Commodities Finished Mixed on the Week

Chicago Agriculture Commodities Finished Mixed on the Week


Chicago Board of Trade (CBOT) agriculture grains futures finished mixed on the week ended 13 October, with Corn and Soybean rallying on less-than-expected ending stocks.

The most active Corn contract for December delivery rose 2.75 cents weekly, or 0.79%, to 3.5275 bu.

December Wheat delivery dropped 4 cents, or 0.90%, to 4.395 bu.

November Soybean up by 28 cents, or 2.88%, to 10.0025 bu.

Thursday, the US Department of Agriculture (USDA) released its monthly Supply & Demand report. For Soybean, the US ending stocks were pegged at 430-M bu, less than the average estimate of 452-M bu and the USDA’ s September estimate of 475-M.

The Bullish data drove Soybean prices higher with massive funds buying.

CBOT floor brokers reported that Friday alone, funds bought some 7,000 contracts of Soybean, which resulted in sending Soybean above the 10.0 bu mark.

The USDA pegged US MY 2017-18 Corn stocks at 2.34-B bu compared with the USDA’ s prior estimate of 2.335-B, indicating limited increase even following the harvest in the past month.

Also supported by positive weekly export sales, CBOT Corn futures rose more than 1% during the last session of the week.

The long Soybean/short Corn trade has become crowded and some liquidation of this spread is expected, said agriculture analysts.

As for Wheat, the USDA ending stocks were estimated at 960-M bu, which increased 2.89% from USDA last month’s estimate of 933-M.

CBOT Wheat rallied to sharp gains as funds covered a modest portion of their shorts heading into the weekend. Bargain buying after 4 consecutive decliners offered more support to Wheat futures.

The CBOT Wheat prices have became competitive with the Black Sea Wheat, as USD weakened during  the week.

Still, the more than 2% rally of Wheat futures Friday could not make up for the losses it suffered earlier on the week.

It is likely that the vastness of world Wheat acreage is maintaining high production and keeping prices under pressure, agriculture analysts noted.

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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