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 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Evening markets: corn gains, bucking rising dollar

Twitter Linkedin

Corn regained its lead by the close of trade on Friday, jumping 3%, while its grain partner wheat struggled against a stronger dollar.

The Midwest snowstorms remained one reason for investors to get bullish on the grain, with somewhere around 1.5bn bushels yet to harvest, some of which may now have to wait until next year to get in the silo.

"The market is beginning to respect the fact that roughly 680m bushels of corn is in eight inches or more of snow," US Commodities, the broker said.

But technical factors also played their part, with corn for March getting back above both its 200-day moving average of $3.97 a bushel, and the psychologically imported $4 a bushel mark.

The contact ended 11.5 cents higher at $4.04 ½ a bushel in Chicago.

Stronger dollar

Other crops had more difficulty facing down a dollar which has now begun rising on good US data – on hopes for economic revival – as well as the poor data which ironically helped it before, as investors opted for a currency viewed as a safe haven in tough times.

Friday bought upbeat US retail sales data and statistics showing an improvement in American consumer confidence.

That helped the dollar strengthen to below $1.46 against the euro for the first time since October.

Wheat for March only just managed a positive close, ending up 0.5 cents at $5.37 ½ a bushel.

Soybeans did a little better, closing up 8 cents at $10.35 a bushel, helped by a fresh order of 232,000 tonnes by China.

'Too expensive'

The currency moves helped European wheat, at least, with Paris ending E0.75 a tonne higher at E128.75 a tonne for January.

London wheat for the same month jumped £1.95 to £107.10 a tonne.

Not that farmers should get too excited, to judge by comments from Hugh Schryver at grain merchant Glencore.

"For what little business is being done, UK feed wheat is currently €2-3a tonne too expensive against shipments from the European Black Sea – that's Romania and Bulgaria"

By Agrimoney.com

Twitter Linkedin
Related Stories

Hedge funds turn net bullish on ags - ahead of price drop to historic low

Speculators are wrong-footed in soymeal, in which they hike bullish bets just before a price tumble. But they fare better in cotton and cocoa

December makes poor stab of bringing festive cheer to ag bulls

This might have been the month when grain prices began a "breakout", higher. Instead, ag prices are hitting their lowest in at least 26 years

Morning markets: Wheat futures set fresh contract low

... dragging on the corn market, amid selling ahead of a key US report. The Argentine weather outlook depresses soybean prices

Soft commodities better bets than grains for 2018, says Commerzbank

Indeed, investors are overrating prospects for corn and wheat futures. But cocoa futures have scope for gains, and coffee could see a "price surge"
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069