Linked In
News In
Linked In

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Evening markets: crops' revival proves a blip

Twitter Linkedin

Crops, once again, managed to avoid bullish signals from external markets, putting only a temporary claim on positive territory.

Shares and oil managed to beat off early blues after the second large Shanghai slide in three days brought the market's losses in two weeks to 20%, signalling a bear market.

Bargain-hunting revived equities, with crude soaring 3.6% in New York at 16:50 GMT thanks to the added bonus of an unexpected drop of 8.4m barrels in US oil inventories. Analysts had expected a rise.

The US dollar weakened too, usually a good sign for exports such as farm products.

Sudden sell off

But Chicago crops managed only a temporary claim on the high ground.

"Wheat suddenly sold off this afternoon after spending most of the morning higher," Vic Lespinasse at said.

The slip was blamed by some on talk of regulatory limits being put in place by the the Commodity Futures Trading Commission.

"I don't know if this is the real reason for this sell off or not but there might be a connection," Mr Lespinasse added.

East vs west

The market had appeared to take in its stride the latest data from the ProFarmer tour of Midwest crops, which showed mixed yields.

The tour was showing crop condition "much better in the west than in the east", Vic Lespinasse at said.

"For example, Nebraska corn yields were estimated at almost 159 bushels per acre, way above the 3 year tour average of 141.5 bushels per acre.

"But Indiana corn yields were put at 157.3 bushels per acre, only modestly above the three year average of 154.1 bushels per acre.

September corn stood 1 cent higher at $3.15 ½ a bushel, off a high of $3.21 ¾ a bushel, with the better-traded December contract up 0.225 cents at $3.22 ¾ a bushel.

Ukraine harvest

Soybeans were under pressure too, down 3.5 cents to $9.92 a bushel for September and 5.25 cents to $9.53 ¾ a bushel for the November contract.

Even confirmation of a Chinese purchase of 205,000 tonnes of US beans – the third big order in as many days – failed to shrug of lingering concerns that supplies may not be as tight as had been thought, following poor US crush data at the end of last week.

Meanwhile, wheat dropped 1.25 cents to $4.69 ¼ a bushel for September and the same to $4.97 a bushel for the December contract, which hit $5.08 a bushel earlier.

Ukraine's report of a better grain harvest may not have helped, fuelling further expectations of a bumper world crop, on top of plentiful supplies.

Indeed, markets in Ukraine's nearer-neighbours in Europe were affected even before Chicago's contracts took a turn for the worse.

London wheat for November closed down £0.25 at £96.00 a tonne, with the Paris November milling wheat contract down E1.00 at E127.25.


Twitter Linkedin
Related Stories

Evening markets: South American double whammy brings ags back down to earth

Ags lose early gains, undermined by a tumble in Brazil’s real, and falling rain in Argentina. Still, wheat futures remain in positive territory

Can cotton prices extend their rally?

History suggests futures will not stay long in the 70s cents a pound. So which way will they trend?

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
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 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