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: wheat leads crops recovery

Twitter Linkedin eCard

Farm commodities stage a firm recovery as a change in the financial weather, prompted by comments from Timothy Geithner turned headwinds into tailwinds.

Mr Geithner, the US Treasury Secretary, told US politicians that the "vast majority" of banks were running with a capital cushion, easing jitters over the financial sector.

Equity and oil prices, whose steep falls on Monday send crop investors running for cover, turned favourable again on Tuesday, albeit failing to recover all lost ground.

Even the dollar chipped in by reversing gains against the euro and, in particular, sterling to give US commodity markets, at least, an extra boost.

'Planting way behind'

Among the main grains, wheat topped the leader board as the subsidence of financial market storms allowed investors to take stock of Monday's US planting report showing spring wheat sowing behind schedule and winter wheat still suffering from drought damage. Chicago's May wheat contract added 2.2% at $5.15 ¾ a bushel at 17:00 GMT.

Paris wheat also managed a good showing, adding E2.75 to E141.00 a tonne. But London was held back by the stronger pound, adding just £0.25 to £107.75 a tonne.

The planting report also helped Chicago corn, which added 1.5% to $3.75 a bushel as traders digested the scale of delays wet weather was causing US growers.

"Planting progress is way behind, so that's supportive," a US trader told Reuters.

For once, soybeans held up the rear, adding a modest 1.3% to $10.31 ¾ a bushel, with forecasts of tight stocks and strong Chinese demand continuing to provide support.

Sour juice

Among soft commodities, New York cocoa recovered 1.7% to $2,420 a tonne, despite reports of favourable weather in the Ivory Coast, the main producing country.

July sugar managed to close 0.75% firmer at $13.42 a pound, paring early losses, with July coffee also recovering from negative territory to end unchanged at $1.1360 a pound.

Orange juice, however, proved unable to shrug off the bears, amid talk of wetter weather dousing parched Florida crops. New York's may contract added $2.95 to Monday's losses to close at $80.65 a pound.

Earlier, palm oil also closed lower, although well above intraday lows, as talk of low stocks returned.

"The thing is the physical side is still tight," a trader said. "Plantation firms are not in selling mood."

Bursa Malaysia's benchmark July contract closed 11 ringgit down at 2,435 ringgit a tonne after touching 2,377 ringgit earlier.

Twitter Linkedin eCard
Related Stories

Evening markets: Soybean futures torn between Argentina, China fears

... with one concern upbeat for prices, and the other decidedly bearish. Cocoa, wheat end firm. But sugar comes close to a two-year low

Lean hog futures tumble - but it's not all China's fault

Beijing’s threat to impose a 25% tariff on imports of US pork is hardly bullish news for hogs. But it is not the only factor explaining tumbling prices

Weekly grains and oilseed market view from Europe, March 23

Wet weather slows spring sowings... are EU grain supplies as big as data suggest?... support to wheat prices from rises in Russian values...

Morning markets: Soybean prices hold, even as China-US trade tensions grow

Still, what of rising soybean prices in China itself - where sugar import data show how import levies can affect trade? US wheat futures extend their recovery
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