The weaker dollar unlocked some broad based buying in
commodities, with corn and soybean benefiting, but weak export sales sapped the
strength from the wheat market.
"We've had commodities almost as a whole oversold, and so we're
getting some bargain buying, and finding support around all commodities today,"
said Steve Georgy, at Allendale.
"Fresh grain news is lacking but market finding support after
the fed rate hike decision," noted Kim Rugel, at Benson Quinn Commodities, with
the dollar plumbing five-week lows against world currencies.
"Today's trade is consolidative with firmer macros and weak
dollar supportive," Ms Rugel said.
On the face of it, the decision by the Federal Reserve to
raise interest rates was supportive for the dollar, but given that that move
was considered a done deal ahead of time, markets bought the rumour and sold
In addition, the tone of Janet Yellen yesterday was seen as
downplaying the possible number of rate hikes to come this year.
Strong corn sales
Corn export sales
were buoyed by better than expected US weekly export sales, which came in at
This was well above expectations, which range between 700,000
and 1.0m tonnes, the highest sales number in seven weeks.
May corn futures settled up 0.8%, at $3.66 ¼ a bushel.
Soybeans break losing
Support from corn, and some decent export sales, helped May soybean futures snap an eight-session
slide, after the contract put in its lowest close in four month's last session.
Soybean export sales were reported at 472,000 tonnes, in-line
with analyst expectations.
May soybean futures settled up 0.4%, at $100.01 ½ a bushel.
"The $10.00 mark has been good to soybeans, providing
support despite expectations South American crops could still be getting
larger," noted Mr Cronin.
prospects got a fillip late yesterday from big Egyptian buying, with ideas that
cash-strapped Egyptians are favouring state subsidised bread over other foods,
driving up demand.
But the truth is that big demand is running into ample
selling, and high fright prices meant that US wheat was out of the running,
despite being the cheapest on offer exclusive of fright.
Tregg Cronin, at Halo Commodities, said it was "encouraging
to see competitive free on board offers, but landed prices illustrate the
island US wheat is on thanks to the freight disadvantage".
"The world wheat market is very competitive and the primary
exporters have a lot of old crop wheat they need to get moved before the new
crop supplies hit from the northern hemisphere," said Darrel Holaday at Country
Wheat export sales were reported at 264,000 tonnes, at the
bottom end expectations.
May Chicago wheat unchanged the day down 0.1%, at $4.25 ½ a
bushel, as weak export sales withed.
But Minneapolis, spring wheat soared, with the May contract
up 1.4% on the day at $5.47 a bushel, pushing the premium of front month spring
wheat futures to May Chicago futures to a five-month highs.
Ms Rugel saw "Minneapolis leading the way up on recent
firming in the cash markets and lack of producer selling".
Cocoa falls further
Cocoa future fell
for the second straight session, as markets focused once again on massive
Late on Wednesday a senior official in the ICCO warned that
the cocoa market may be at the facing years of structural surpluses, depressing
"In Cote D'Ivoire, the world's largest producer country, low
prices have already resulted in mass non-fulfilment of export contracts," noted
"This has led to a sharp rise in warehouse stocks at export
terminals and in the country's interior."
"Consequently, cocoa farmers are having difficulties finding
buyers for the beans they have harvested," Commerzbank said. "There are also
reports of social unrest in the country."
Currency support for
Coffee futures rallied, helped by a strengthening real earlier
in the session.
May arabica coffee
futures in New York finished up 0.4%, at 141.45 cents a pound.
May robusta settled
up 0.1%, at $2,183 a tonne.