Chicago Agriculture Commodities Finished the Week Mixed

Chicago Agriculture Commodities Finished the Week Mixed

$CORN, $WEAT, $SOYB

Chicago Board of Trade (CBOT) agriculture grains futures closed a choppy week with Wheat and Soybean prices surging..

During the trading week which ended 15 September, the most active Corn contract for December delivery fell 2 cents, or 0.56%, to 3.5475 bu.

The US Department of Agriculture (USDA) last Tuesday released its monthly report on domestic and world agricultural supply and demand. The USDA September crop report was deemed Bearish Corn, as it adjusted the US Corn yields upwards.

The USDA also pegged US MY 2017-2018 Corn stocks at 2.335-B bu compared with its August estimate of 2.27-B.

In response, Corn prices plunged 1.68% at the end of that session.

But, many traders believe that the Corn market has bottomed; a sideways trend is most probable through harvest, and the next major move will hinge upon South American crop establishment.

Wheat futures posted big gains last week in Chicago.

The most active Wheat contract for December delivery rose 11.25 cents, or 2.57%, to 4.49 bu.

According to last Tuesday’s USDA report, the US Wheat ending stocks were estimated at 933-M bu, the same as last month. But the USDA adjusted downwards its world Wheat ending stocks to 263.14-M tonnes, with a decrease of 1.5-M tonnes.

The new Wheat forecast pushed its futures higher, prompting a 1.69% increase during the session.

The world Wheat market as a whole seems to have digested Russia’s massive harvest this year. While Russian prices continue to drift lower at domestic market as inventories build, its export market rallied steadily since early September.

Southern hemisphere issues persist.

Australia is projected to take a big hit in Wheat production this year, with early estimates already down 35% from last year. Australian Wheat exports are expected to fall 23% this year.

As for Soybeans

Last week it was Ups & Downs. On Wednesday and Thursday, technical buying boosted the Soybean prices and the USDA export data gave additional support.

Private exporters reported more sales of Soybeans for delivery to China. The high demand for US Soybean led to sharp increase in prices. The Soybean market got additional support from trade talk that China booked more US Soybeans for late October or November, taking advantage of the relatively low prices.

But last Friday, Soybean saw a round of end-of-week profit-taking.

USD is in a Bearish trend, despite the fact that it closed this week slightly higher. Many analysts believe that the Buck is trying to forge a bottom, I believe it has a long way to go. A weak USD will make the US grains more competitive, something The Trump Administration wants.

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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