Xinhua
18 Oct 2020, 05:21 GMT+10
CHICAGO, Oct. 17 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose higher in the past week due to a weaker U.S. dollar and massive inflow of speculative capital in the past six weeks, according to Chicago-based research company AgResource.
Spot CBOT corn traded above 4 dollars for the first time in years. Brazilian corn availability is in fast retreat while 2020 Ukrainian crop size drifting towards 30-32 million metric tons based on daily yield data. It is suggested that U.S. end stocks will struggle to fall below 2.0 billion bushels unless China imports more than 20 million metric tons. Potential new Chinese interest and possible La Nina-based drought in Argentina linger in the background, AgResource noted.
The dynamics of corn supply and demand have changed dramatically in the past 2 weeks. A lasting break is unlikely until 2021 North Hemisphere production potential is known.
U.S. wheat futures soared last week to reach a new 6-year high. The market has broken through major chart-based support at 6.10-6.15 dollars, with next resistance noted at 6.75 dollars. AgResource said that a more dynamic bull phase is in the offing if winter wheat fails to properly germinate in Southern Russia. Extreme drought is impacting 60-70 percent of Russia's winter wheat area currently.
The bigger risk for wheat is that Russian wheat exports face stricter export controls in 2021 if production fails to exceed 74 million metric tons.
Soybean futures consolidated early October gains. Support came from the record U.S. soybean export pace and strong cash basis. However, a late-week rally found profit-taking.
China export demand continues to dominate the headlines. South American weather and delayed Brazilian planting are also nudging early 2021 export demand back to the United States for February. Argentine soybean supply is large with Oct. 1 stocks estimated at 29 million metric tons, as against 24 million metric tons a year ago.
As ongoing Chinese demand and delayed South American seeding will underpin CBOT breaks, AgResource said it looks for support in November soybean futures to begin below 10.35 dollars.
Get a daily dose of Manufacturing Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Manufacturing Mirror.
More InformationPublicly, Beijing has presented itself as a neutral party in the war sparked by Russia's full-scale invasion of Ukraine, claiming it...
London [UK], July 11 (ANI): New UK package of support for Ukraine's immediate and longer-term needs was tabled at Ukraine Recovery...
Arrests of critics mount as authorities allege a wide-ranging plot to overthrow Prime Minister Nikol Pashinyans government An Armenian...
Patna (Bihar) [India], July 9 (ANI): RJD leader Tejashwi Yadav on Wednesday heavily criticised the Election Commission of India for...
Fazilka (Punjab) [India], July 9 (ANI): Two accused in the murder of Abohar businessman Sanjay Verma were killed in retaliatory police...
Patna (Bihar) [India], July 8 (ANI): Bihar ADG Kundan Krishnan on Tuesday informed that the shooter who was involved in the businessman...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
New Delhi [India], July 11 (ANI): Trade negotiations between the United States and China are moving slowly, raising the chances that...
(Photo credit: Brad Penner-Imagn Images) Anthony Volpe scored the tiebreaking run on a bases-loaded sacrifice fly by Aaron Judge...
(Photo credit: Jordan Johnson-Imagn Images) Pete Crow-Armstrong crushed a pair of home runs and right-hander Colin Rea handled the...
GUANGZHOU, July 10 (Xinhua) -- As global industries accelerate their transition toward intelligence and sustainability, China's innovative...
URUMQI, July 10 (Xinhua) -- A total of 24 journalists from 23 countries have participated in a media tour of northwest China's Xinjiang...