Chicago Agriculture Commodities Finished Flat To Lower
$WEAT, $SOYB, $CORN
CBOT Chicago Corn struggled Tuesday, hitting it lowest in 6 weeks as easing demand for US shipments and forecasts of crop-friendly weather in Argentina dragged on a market that has lost ground for 4 out of 5 sessions.
Soybeans ticked higher after falling for the past 3 days and touching their lowest since 9 February Monday.
Chicago Board of Trade’s most-active Corn contract was unchanged at 3.57 bu.
Soybean rose 0.1% to 8.61+ bu.
Wheat added 0.2% to 4.54 a bu.
Meteorologists expect that Argentina will dry down again this week to improve crop conditions after recent floods,” said director of agricultural strategy at Commonwealth Bank of Australia in Sydney.
Corn was pressured in part by the US Department of Agriculture (USDA) reporting export inspections of US Corn in the latest week at 737,602 tonnes, in line with trade expectations.
The USDA last week projected that US Corn supplies would rise to 12-year highs during MY 2016-17 as output gains outstrip demand increases.
Farmer selling in the United States is putting further pressure on grain and oilseed markets. US farmers are offloading some of their massive stocks of Corn and Soybean as they seek cash to pay for Spring expenses like seed and farmland rent, agriculture analysts said.
Those sales have helped replenish supplies at many Midwest elevators and processors, as well as at Gulf Coast export terminals.
The supplies outstripped tepid demand, cash grain traders said, and premiums slipped back.
In Australia, agriculture production is set to rebound as the strongest El Nino in nearly 20 years that wilted crops and triggered bush fires subsides, the country’s chief commodity forecaster said Tuesday.
Production of staples such as Wheat, Cotton and Milk are all set to rise during MY 2016/17, according to the Australian Bureau of Agriculture, Resource Economics and Rural Sciences.
Commodity funds sold an estimated net 7,000 CBOT Corn contracts Monday, trade sources said. The funds also were net sellers of 4,000 Soybean contracts and were net even Wheat, they said.
Stay tuned…
HeffX-LTN
Paul Ebeling
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