Chicago Agriculture Commodities Finished Higher Monday
$SOYB, $CORN, $WEAT
US Soybean futures rose to a 6-wk high Monday on concerns about tightening old-crop supplies and excessive rains trimming new-crop yield prospects, traders said.
Wheat and Corn also rose.
At the Chicago Board of Trade (CBOT), the Jul Soybean contract settled up 0.18 to 9.89-1/2 bu after marking 9.90, its highest level since 6 May.
July Wheat ended up 0.12-3/4 at 5.01-1/4 bu
July Corn rose 0.06-3/4 at 3.60 bl.
Agriculture commodity traders have begun positioning ahead of the US Department of Agriculture’s (USDA) 30 June reports on US acreage and Quarterly grain stocks.
Analysts are factoring in a Bullish Soybean outlook.
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Strong demand from domestic processors has been drawing down US Soybean supplies,
Some agriculture commodity analysts suspect USDA may have overstated the size of the US MY 2014 harvest.
CBOT Soybeans and Soymeal drew support from the threat of a port workers’ strike in Argentina’s Rosario agriculture grains hub, but talks aimed at avoiding a walkout were under way Monday.
Analysts expected USDA’s weekly crop progress report to show a deterioration in US Corn and Soybean ratings due to excessive rains.
After the CBOT close Monday, the suspicions were confirmed as the USDA rated 65% of the US Soybean crop as good to excellent, down from 67% a week earlier.
Corn was rated 71% good to excellent, down from 73% previously.
Corn is more mature than Soybean and is seen as better able to withstand recent Midwest rains.
Wheat firmed, settling above 5.00 bu for the 1st time in a week on technical buying and harvest delays in the Midwest.
Funds hold a sizable net short position in CBOT Wheat, leaving the market open to short covering.
Stay tuned…
HeffX-LTN
Paul Ebeling
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