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 ending 29 September when the official US grains stocks report saw most traders leaning in the wrong direction.

The most active Corn contract for December delivery rose 2 cents weekly, or 0.56%, to 3.5525 bu.

September Wheat delivery dropped 1 cent, or 0.22%, to 4.4825 bu.

November Soybean fell 16 cents, or 1.63%, to 9.6825 bu.

December Corn contract ended the week higher, driven mainly by a modestly supportive stocks report released on Friday by the US Department of Agriculture (USDA).

The final US Corn end stocks as of 1 September were pegged at 2.29-B bu, less than the trade’s average estimate of 2.35-B bu.

Agriculture analysts maintain a national Corn yield forecast of 166 BPA, which if realized will pull new crop end stocks closer to 2.00-B bu.

US Wheat futures ended lower in choppy trade, 4 of the 5 sessions saw either sharp rise or plunge more than 1%.

The drought in US Midwest Wheat belt, which traders believed would impact negatively on the Winter Wheat, had boosted its futures. However, the official report put the US Wheat stocks at 2.25-B bu, higher than the average trade estimate of 2.20-B bu.

Although the final plunge in Wheat prices offset nearly all the previous gains in the 1st 3 days, many expected the US Wheat market to shrug off the Bearish data, while Black Sea and European markets continue to move higher, severe dryness shows no signs of ending in New South Wales in Australia.

The CBOT Soybean suffered nearly 2% losses or the week. Soybean traded down through most of the week ahead of the Quarterly USDA stocks report.

It put Soybean stocks at 301-M bu, in contrast with the average trade estimate of 338-M bu, despite the fact that US farmers are bringing in better-than-expected Soybean crops this year.

Soybean prices have been on the rebound lately due to strong demand, especially from China. Agriculture analysts expect that price breaks through harvest will find stronger demand, while rallies back above 10.25 bu offer new sales opportunity.

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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