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: crops hurt by market retreat

Twitter Linkedin

Soybeans slumped 4% on Monday to their lowest for a month – and wheat set a fresh 2009 low - as fine weather and reports of bumper yields tempted sellers on a day when Chinese stock falls shattered financial market confidence.

Investors rushed to safe havens after Shanghai shares slumped 5.8%, their biggest fall in percentage terms this year, on fears over Beijing efforts to rein in bank lending.

Main European share indices closed at least 1.5% down, a fall matched and more by New York shares in early afternoon trading.

The dollar, meanwhile, gained 0.6% against foreign currencies, making exports such as crops more expensive, while oil tumbled 2.7% to $65.67 a barrel for New York September crude.

Rain on the plains

Agricultural commodities also proved unable to sidestep the bullet, with first reports from a Midwest crop tour organsued by ProFarmer showing big potential crops, and weather forecasts not currently presenting any threat.

"Crop scouts in Ohio are reporting big yield potential for both corn and beans despite some dry areas in the northern part of the state," Vic Lespinasse, marketwatcher at GrainAnalyst.com, said

"They report yield potential for both corn and beans is better now than a year ago at this time."

Soybean prices had to suffer the extra blow of disappointing US weekly export inspections data of 5.6m tonnes.

Traders have been questioning assumptions of a tight soybean market since data at the end of last week showed weak US crushings and unexpectedly large deliveries on Chicago's expiring August contract, taken as a sign that bean sellers were failing to find trade homes for their stocks.

September soybeans slumped to $9.77 a bushel - the lowest since mid-July - before recovering some ground to stand at 9.87 ¼ a bushel at 18:00 GMT, down 3.7% on the day.

The better-traded November contract stood 3.0% lower at $9.52 ½ a bushel, off a day low of $9.44 a bushel.

Grain in pain

Corn was a bit better off, helped by a firmer weekly export inspections figure of 40.9m tonnes.

September corn was 2.7% lower at $3.10 ¾ a bushel, with the better-traded December contract down 2.9% at $3.18 ¼ a bushel.

Meanwhile, September wheat set a fresh year-low of $4.65 ¼ a bushel for a near-term contract before reviving somewhat to $4.70 a bushel, down 2.4% on the day.

December wheat fell below $5 a bushel for the first time in the contract's two-year history, standing down 2.2% at $4.98 a bushel.

European contracts fared modestly better, helped by the slide of sterling and the euro against the dollar. London milling wheat for November lost 1.0% to £96.75 a tonne, while its Paris milling equivalent shed 1.2% to E128.75 a tonne.

Sterling cushion

Softs got caught in the maelstrom too as funds drew in their horns.

New York cocoa for December slid 3.6% to $2,740 a tonne while its London equivalent - again shielded somewhat by currency moves - closed down 2.5% at £1,767 a tonne.

December arabica coffee beans were 2.7% down at 128.75 cents a pound in New York, with November robusta beans ending down 2.0% at $1,385 a tonne in London.

Fundamental help

Sugar, however, staged some rebound, helped by continuing tight fundamentals for the crop.

New York raw sugar for October revived from 21.35 cents a pound to 21.74 cents a pound, down 1.1% on the day.

Its London white sugar counterpart ended down just $1 at $552.0 a tonne, after standing down $17.5 a tonne at one stage.

By Agrimoney.com

Twitter Linkedin
Related Stories

Morning markets: Hard wheat regains premium over soft, amid US dryness worries

Kansas City wheat outperforms, as Plains precipitation worries extend to a dearth of snow cover. But Kuala Lumpur palm oil hits a 16-month low

Evening markets: Ags gain, as funds begin to get that year-end festive mood

Ag prices recover, helped by the likes of more positive comment on US export competitiveness, and some more negative talk on Argentine rains

Morning markets: Grains stage a recovery. Will it last?

Corn, soybean and wheat futures start Wednesday making headway which has been difficult to come by of late. Cotton gains too

Evening markets: ags overlook crumbs of comfort in Wasde to set fresh historic low

The Bcom ag commodity subindex ends at a fresh record low, as US export fears overtake upbeat interpretations of corn, cotton estimate revisions
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 the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069