Chicago Agriculture Commodities Traded Higher on the Week
Chicago Board of Trade (CBOT) agriculture commodities rallied sharply on the week which ended 20 July, as traders expected increasing demand for UX supplies.
The most active contract for December Corn rose 14.25c weekly, or 4.02%, to 3.69 bu.
September Wheat delivery went up 19c, or 3.82% weekly, to 5.16 bu.
November Soybean were up 30.5c, or 3.66 percent, to 8.6475 bu.
CBOT futures, especially Soybean fell in the week before last, on fears of escalating trade tension between the USand China. But a better-than-expected export sales report boosted the downward market.
US Corn sales for delivery in MY 2017-2018 that ends on 31 August were reported at 641,000 tonnes, up 59% from the previous week and 38% from the prior 4-week average, according to the US Department of Agriculture (USDA).
Meanwhile, the latest crop progress report indicated that 72% of US Corn crops are in good/excellent conditions, below the previous week’s rating of 75%.
Last Wednesday, news that US weekly Ethanol production was up 3% added more support to Corn, which is used as raw material for the fuel.
All the factors contributed to the sharp rise of CBOT Corn futures.
CBOT Wheat futures ended the week almost 4% higher, mainly due to expected fall of world crop yields.
EU Wheat was rallying on declining production in France and Germany, while Russian Wheat quality was also falling due to rains for winter Wheat. Australia has a dryness problem for its wheat production. Traders now hope that US Wheat can increase its world share on rising demands.
CBOT Soybean futures also posted sharp weekly gainers, and the rise lasted 5 sessions running, though the prices are still at very low marks.
Market observers have noticed the widening spreads between US and Brazil export prices, with Brazilian Soybean being currently priced nearly 24% higher than US Soybeans. That’s probably the Key reason that US Soybean sales jumped 59% W-W to 252,300 tonnes, according to USDA data. That is still 22% down from the prior 4-week average.
USDA pegged the Soybean crop condition at 69% good/excellent, below a week ago of 71%, giving additional support to the Soybean futures.
Agriculture analysts research predicted a firming price trend of commodities into early Y 2019.
Have a terrific week
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