Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Evening markets: demand hopes lift beans and sugar

Twitter Linkedin eCard

Friday belonged to soybeans and sugar, both of which were boosted by prospects of strong demand, while wheat remained under pressure from the mountain of global supplies.

New York raw sugar for October jumped 5.1% to a fresh 28-year high of 23.63 cents a pound as the prospect of the festival season in India, the world's biggest consumer of the commodity, returned attention to the tightness of the market.

Besides a collapse in Indian production, part down to weather and part to a switch by farmers to grains while prices were high, output in Brazil, the top-ranked producer, suffered for heavy trains.

Raw sugar remained near its high in late New York trade, standing up 4.5% at 23.52 cents a pound at 17:15 GMT. London white sugar for October closed up 2.8% at $573.9 a tonne.

Buying competition

Old crop soybeans had the boost of the US reporting yet more sales to China, this time for 110,000 tonnes, with Taiwan also in the market.

Chinese has now purchased some 8.4m tonnes of beans from the US this season, twice the amount of a year before.

"The cash bean market here in the US remains very strong as exporters vie with crushers for dwindling supplies, driving up prices in the process in both the cash and September futures markets," Vic Lespinasse, Chicago marketwatcher for, said.

The start of Argentina's farm strike did little to hurt soybeans' cause although, given the country has few beans to sell after a bad harvest, the immediate impact is not expected to be that great.

September soybeans were 2.3% higher at $11.40 � a bushel.

Traders' dilemma

However, new crop November beans were not so cheerful, adding just 0.7% to $10.03 � a bushel, undermined by the prospect of a bumper harvest � provided the weather stays good.

The crop's weak spot � and corn's too - is backwardness, which means a late harvest and greater potential for frost damage.

"The market is caught between two extremes currently: if an early freeze hits the crops, prices will shoot sharply higher," Mr Lespinasse said.

"On the other hand, if we do not have an early freeze, we will have a record bean crop and the second largest corn crop ever, which could drive prices much lower.

"Many traders simply don't know what to do in this situation and they are being extra cautious."

Cautious for corn meant sending the September contract 4 cents lower to $3.19 a bushel, while the better-traded December lot was 2.25 cents lower at $3.27 a bushel.

Wheat stumbles

Still, that was better than wheat, which remained under the cosh following Thursday's International Grains Council report showing stocks on course for an eight-year high.

Chicago's September lot stood down 13 cents at $4.62 a bushel, within 5 cents of its 2009 low. December wheat lost 13 cents to $4.90 a bushel.

It was weaker across the Pond too, ending down E1.00 at E128.50 a bushel in Paris, for November delivery, and down �1 at �100.00 a tonne in London.

Farmers come forward

A rise in wheat back above a ton a tonne appears to have eased a sellers' strike.

"It appears that enough wheat has now come forward to satisfy the current demand," Hugh Schryver at Glencore said.

"Consequently prices have eased a little."

Still pries remained "too expensive now to export to the usual destinations such as Spain", he added.

"Wheat from the Baltic states is undercutting UK supplies by �3-4 a tonne."


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

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069