IKAR in Mass Media

Corn faces biggest weekly drop in 2 years on cooler U.S. weather

20 июля 2019 года

SINGAPORE — Chicago corn futures ticked higher on Friday, but the market was poised for its biggest weekly drop since June 2017 as cooler weather across the U.S. Midwest boosted crop prospects.

Wheat edged higher on bargain-buying after finishing lower for the last four sessions, with gains were capped by harvest pressure around the northern hemisphere.

The most-active corn contract on the Chicago Board Of Trade has declined by 5.9% this week, the most since the week ended June 23, 2017.

Soybeans are down 3% for the week, giving up some of last week’s gains, while wheat has lost 5.1%, the most since early March.

“We are in weather market and there is going to be volatility until the harvest,” said a Singapore-based grains trader.

Last week, grain markets were underpinned by fears that U.S. crops could suffer from prolonged hot and dry weather, but Midwest rains brought some relief on Thursday.

The U.S. Department of Agriculture’s (USDA) export data also showed Russia and Mexico canceled 171,000 tonnes and 32,000 tonnes of soybeans, respectively, adding pressure on prices.

Investors in the grains market are awaiting the USDA acreage report on Aug. 12 for price direction.

“The corn story is far from over,” said Ole Houe, director of advisory services at brokerage IKON Commodities. “The market still need to reach a consensus as to how many acres were lost due to rains and flooding.”

Russian agriculture consultancy IKAR has lowered its forecast for the Russian grain harvest to 121.4 million tonnes, Interfax news agency reported.

On July 3, IKAR forecast that the grain harvest would be 123.4 million tonnes.

Commodity funds were net sellers of Chicago Board of Trade wheat, corn, soybean, soymeal and soyoil contracts on Thursday, traders said.

Grains prices at 0331 GMT

Contract Last Change Pct chg Two-day chg MA 30 RSI

CBOT wheat 496.50 3.00 +0.61% -2.17% 522.24 36

CBOT corn 432.00 2.25 +0.52% -2.10% 443.09 43

CBOT soy 903.25 4.25 +0.47% -0.30% 911.41 48

CBOT rice 11.83 -$0.06 -0.50% +0.38% $11.76 64

WTI crude 56.25 $0.95 +1.72% -0.93% $56.51

Currencies

Euro/dlr $1.126 $0.004 +0.37% +0.49%

USD/AUD 0.7070 0.006 +0.87% +0.83%

Most active contracts

Wheat, corn and soy US cents/bushel. Rice: USD per

hundredweight

RSI 14, exponential

https://business.financialpost.com/

Source: financialpost.com | #grain | Comments: 0 Views: 84

There are no comments yet. Be the first!

Only authorized users can comment.