Sat, 08 Aug 2020

U.S. agricultural futures close mixed

Xinhua
08 Jul 2020, 08:05 GMT+10

CHICAGO, July 7 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Tuesday, with corn and soybean falling and wheat rising.

The most active corn contract for December delivery dropped 3.75 cents, or 1.05 percent, to close at 3.525 U.S. dollars per bushel. September wheat gained 2 cents, or 0.41 percent, to settle at 4.9525 dollars per bushel. November soybean lost 3.75 cents, or 0.41 percent, to close at 9.025 dollars per bushel.

CBOT traders estimated that funds bought 3,500 contracts of corn, 4,400 contracts of soybean and 4,200 contracts of wheat.

U.S. Department of Agriculture (USDA) did not announce any new sales to China or others. Chicago-based consulting company AgResource noted that what has been absent so far this summer is sales to nations other than China. COVID-19 appears to have a negative impact on world grain trade. USDA is likely to cut its 2019/20 world corn export outlook by at least 6 million metric tons.

Private Russian wheat production estimates are retreating with most now seeing the 2020 crop in a range of 76 to 78 million metric tons based on early harvest data. Such a crop is above last year which would allow Russia to export 34 to 36 million metric tons of wheat.

The currencies of the world's major agricultural countries are generally weak against the U.S. dollar with limited rally potential nearby. The weakness of non-U.S. agricultural currencies limits U.S. export opportunities longer term amid overseas production expansion.

Weather forecast shows that rains will occur regularly in U.S. Midwest with near to above normal temperatures.

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