RSS
Twitter
Linked In
News In
Markets
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Evening markets: bear break sends wheat down 4%

Twitter Linkedin eCard

Chicago wheat's rally came off the rails as some scraps of bearish data, coupled with weaker corn, proved sufficient to return the grain to the back foot.

Brussels was responsible for two pieces of unhelpful data. One came Coceral, the grains lobby group, which raised its forecast for European production to nearly 140m tonnes, above the US Department of Average.

That might not be such an issue if it were not for the fact that Europe's position on export markets appears to be improving, with the European Union announcing 462,000 tonnes of weekly wheat export licences.

"The European export figures appear encouraging as they show a clear increase compared to last week's disappointing numbers," French analysis group Agritel said.

Pressure tells

With concerns for regulatory tinkering in the US also returning, and thought currently to favour prices of later contracts over near-term, and corn sagging on the absence of frost forecasts, bears this time succeeded in getting wheat lower.

Profit-taking from this week's rally added to selling pressure.

The December contract stood 4.0% lower at $4.54 ½ a bushel at 18:00 GMT.

However, they were still having trouble driving it to a contract low, currently at $4.50 a bushel, with the lot bouncing off $4.50 ¾ a bushel this time.

December corn, meanwhile, slid 1.0% to $3.33 a bushel in line with waning frost fears.

November soybeans held up, adding 2.5 cents to $9.22 a bushel, although this was attributed by traders to short-covering ahead of the weekend.

Ton a tonne

The selling trend weakened in its journey across the Atlantic, with European markets supported by some extent by the EU export data.

Paris wheat for November closed down E1.25 at E122.50 a tonne, with London wheat ending unchanged at £99.00 a tonne.

Earlier, it went above £100 a tonne for the first time since the end of August, helped by weaker sterling, which earlier dropped to E1.0848 against the euro as investors continued to react to the approval of UK central bank head Mervyn King of a weaker currency which would boost exports.

By Agrimoney.com

Twitter Linkedin eCard
Related Stories

Evening markets: Soybean futures gain, cotton prices jump on US data

Initial USDA forecasts for crop supply and demand for 2018-19 lift soy and cotton prices, but are not so well received in the cotton market

Weekly grain market view from Europe, February 23

EU cold snap could damage crops... UK market prices in closure of Vivergo ethanol plant... Rising Russian wheat prices...

Evening markets: Argentine moisture slips up soymeal rally. But weather revives wheat

Meal futures dip, a little, for the first time in 12 sessions. But wheat futures gain, as drought spreads in Kansas, and cold reaches Europe

Morning markets: Ag futures ease, as traders await key 2018 forecasts

US officials will later on Thursday issue the first of a series of forecasts for US crops in 2018-19. Markets are cautious in the mean time
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069