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Business Recorder
3 days ago
- Business
- Business Recorder
Wheat steadies after ample supply pushes prices to 5-year low
CANBERRA: Chicago wheat futures rose on Thursday after ample supply and the placing of bearish bets by speculators powered a weeks-long sell-off that drove prices to a five-year low on Wednesday. Corn futures also gained after falling to contract lows in the previous session, and soybeans edged up from their lowest price levels since April. As with wheat, global supply of both crops is plentiful. The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 0.6% at $5.11-1/2 a bushel at 0537 GMT after falling as low as 5.04 on Wednesday. CBOT corn rose 0.7% to $4.04 a bushel and soybeans climbed 0.2% to $9.86-1/4 a bushel. Northern Hemisphere wheat harvests have been flooding the market with new-crop grain. Export competition is strong and demand not large enough to support prices. Wheat from central area of Russia, the biggest exporter, is reaching ports, easing concerns about availability after poor early harvest results in southern regions. Recent rainfall has boosted the outlook for harvests in Canada, Australia and Argentina, traders said. Falling corn futures have also dragged down wheat by incentivising poultry and livestock producers turn feed cheap corn to their animals instead of wheat. The U.S. is expected to produce bumper corn and soy harvests later in the year. Analysts polled by Reuters think the U.S. Department of Agriculture will raise its estimates in a monthly report due on August 12. Funds have expanded their net short position in CBOT wheat, corn and soybeans in the last couple of weeks, traders say. Hanging over prices are concerns that U.S. President Donald Trump's aggressive trade policies will result in lower exports of U.S. grains and oilseeds. China's buying of several cargoes of Argentinian soymeal 'is clearly sending a message to the United States that it can find ways to fill its needs without U.S. soybeans,' StoneX analyst Arlan Suderman wrote in a note. Analysts at JPMorgan also this week said 'heightened uncertainty, particularly surrounding the future of US-China trade and wider implications for global growth, is contributing to a widespread state of apathy across row crop markets.'
Zawya
25-02-2025
- Business
- Zawya
Corn steadies after fund sell-off
CANBERRA: U.S. corn futures steadied on Tuesday after improving crop weather in South America and expectations of increased planting by U.S. farmers triggered a speculative sell-off that drove prices from 18-month highs. Wheat and soybean futures rose slightly, having been dragged down by corn in recent days. FUNDAMENTALS * The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.1% at $4.97-1/2 a bushel at 0212 GMT, with CBOT wheat climbing 0.1% to $5.94 a bushel and soybeans up 0.3% at $10.50-3/4 bushel. * Corn has slipped more than 3% from a peak of $5.14 on Friday, its highest since August 2023. * Prices are still up around 8.5% this year as strong U.S. exports and drought in Argentina tighten the supply outlook. * However, heavy rainfall across much of Argentina's agricultural heartland is likely to continue over the next few days and mark an "inflection point" for corn and soybean crops, the Rosario grains exchange said on Monday. * Rapid planting of Brazil's safrinha corn crop in recent weeks has eased fears that late sowing would reduce yields, StoneX analyst Arlan Suderman wrote in a note. * The U.S. Department of Agriculture is expected to project an increase in the amount of U.S. farmland planted with corn this year at its annual Agricultural Outlook Forum on Thursday. * Commodity funds hold a massive net long position in CBOT corn futures, leaving the market prone to bouts of long liquidation that drives down prices. Funds were net sellers of corn on Friday and Monday, traders said. * In wheat, Russian export prices continued their upward trend last week due to a stronger rouble and lower shipments. * Russia's state weather forecaster meanwhile said late winter frosts in Russia's southern breadbasket regions were unlikely to inflict significant damage on winter crops. * In soybeans, consultants AgRural trimmed their forecast for Brazil's crop to 168.2 million metric tons from 171 million tons, but that still represents a record-breaking harvest. MARKETS NEWS * Asian shares slid on Tuesday amid worries about U.S. investment curbs on China, while a run-up in the euro faded as investors wait for Germany to sort out the formation of its new government with no major surprises. (Reporting by Peter Hobson; Editing by Rashmi Aich)
