CBOT agricultural futures drop in rain forecast

Chicago, July 10 (Xinhua) – CBOT agriculture futures fell last week and corn is one of the main factors driving prices down, Chicago-based research firm AgResource said.

However, AgResource remains bullish as the expanding variant of COVID-19 raises concerns about the recovery of emerging markets.

CBOT corn futures prices fell sharply due to heavy rains last weekend in Iowa and the eastern Midwest. Iowa’s rain cover this weekend will be closely watched next week. Illinois, Indiana, and Ohio don’t want moisture throughout pollination, so too much rain falls on their eastern pockets in the Midwest. The figure shows that corn has discovered a new plateau amid tight stocks from US exporters. The market will continue to focus exclusively on supply for a few more weeks.

AgResource’s bullish treaty focuses on demand and tightening for US stocks, not US yields. Brazil’s year-over-year decline in production will place incredible demand on the United States over the next harvest year, along with growing import needs in and outside of China. Ethanol production is higher than pre-COVID-19 levels. Regardless of the final yield, new American crops are quickly absorbed by end users, resulting in another year of reduced US corn inventories.

AgResource considers the current price to be very attractive to end users and advises them to cover new weaknesses for an additional 12 months.

US wheat futures closed weakly as supply pressure continued in the US and European winter wheat markets and the liquidation of US spring wheat futures continued.

Supply pressures will ease from mid-July when US winter harvests exceed 60%. Attention then shifted to the pace of feed demand in the United States, and this week’s importers returned in large numbers to the market. Almost all of the major importers have bought or are looking to source by the end of the month. World wheat trade will set a new record between 2021 and 2022, and exporters’ output will not be worth consumption as in recent years. This is exacerbated by the reduction in wheat production in the United States and Canada from 6 to 9 million tonnes compared to the current USDA forecast.

The wheat market is lacking in enthusiasm, according to AgResource, but the long-term bull market that began in 2018 will be extended by a year.

Soybean futures prices fell on improving prospects for precipitation in the US Midwest and improving assessments of crop condition for the week. Still, the USDA surprised the deal on Tuesday with a 1% drop in crop condition assessments to 59%. This is the fourth lowest value on this week’s record. The deterioration of the US rating and the loss of Canadian rapeseed buildings due to the drought pushed up the value of soybean oil on Friday. This has provided significant support for US soybean prices in the future outlook for increased US soybean milling rates.

New soybean contract highs in November should come with signs of bad weather in the central United States and yields below 49 bushels per acre.

CBOT agricultural futures drop in rain forecast

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