Chicago Agriculture Commodities Finished Mixed on the Week
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures finished mixed on the week ended 6 October, with a Quarterly stocks report and unfavorable weather conditions being the Key factors in the market.
The most active Corn contract for December delivery fell 5.25 cents weekly, or 1.48%, to 3.50 bu.
December Wheat delivery dropped 4.75 cents, or 1.06%, to 4.435 bu.
November Soybean rose 4 cents, or 0.41%, to 9.7225 bu.
The Corn and Soybean futures posted gainers following a Quarterly report released on 29 September by the US Department of Agriculture (USDA), which put both stocks below average trade estimates.
Following an active weekend harvest, also due to profit-taking, Soybean futures started the week lower. The CBOT Corn futures followed Soybean, suffering losses for the 1st 3 consecutive sessions.
With concerns that rains in the US Midwest might slow down the harvest, both CBOT Soybean and Corn futures reversed their downtrends and posted gainers later in the week.
Additional support came from above-normal temperatures and dryness in Brazil, another Key Soybean and Corn producer in the world.
Robust demand, especially from China, also contributed to the Soybean rally.
More wet weather is expected on the way for the majority of the US Midwest, and harvest will probably be delayed in parts of the Corn Belt.
Forecasters said that the wettest areas would be in the eastern Corn Belt, such as areas of Minnesota, eastern Iowa, South Dakota, and Nebraska.
The crop progress was about a week behind schedule nationally.
Beside the rain factor, it is also because the crop was not mature due to the cooler weather in August and September, said some agriculture analysts.
Wheat ended lower over the week in Chicago.
Spring Wheat was still under the pressure of the negative USDA report, which pegged the US Wheat stocks at 2.25-B bus, compared to the average trade estimate of 2.20-B bu.
A strong USD added more pressure to American Wheat, making it less competitive at international market. Along with the record harvest of Russian Wheat, CBOT Wheat futures were dragged down over the week.
This week, traders will focus on the new USDA monthly supply and demand report, which is expected to be released on 12 October. It will give more clues on US Corn and Soybean yields this year.
Have a terrific week.
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