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

Morning markets: China continues to weigh on crops

Twitter Linkedin

Crops lost further ground on Friday as China's move to mop up liquidity continued to concern investors, despite the prospect of fund rebalancing starting in earnest.

The dollar continued to strengthen too. Some traders claimed this was down to hopes for better US jobless data, ie improving hopes for the global economy, rather than a flight to quality amid concerns for a Chinese slowdown, ie deteriorating hopes.

Whatever, it rose to a four-month high against the yen, and hit $1.4288 against the euro at one point, making dollar-denominated assets such as crops less competitive.

Vegetable oils slip

China's signal of tighter monetary policy, by raising interest rates on its three-month bills, and potentially of some economic slowdown was viewed as a particular threat to soybeans, given the country's status as the world's biggest importer of the crop.

March soybeans eased a further 4.75 cents to $10.21 ¼ a bushel in Chicago, as of 08:00 GMT, with the soon-to-expire January lot down 6.25 cents at $10.11 ¼ a bushel.

They lost further ground on China's Dalian exchange too, adding a 1.1% loss to the 2%+ shed on Thursday.

And in Kuala Lumpur, palm oil shed 1.5% too at one point before the prospect of key monthly data on Monday from the Malaysian Palm Oil Board encouraged positing covering, helping the benchmark March contract to recover back to 2,630 ringgit a tonne, unchanged on the day.

Fund buying

The grains managed a somewhat better performance, with March corn also unchanged in Chicago, at $4.17 ½ a bushel, while wheat eased 2.25 cents to $5.55 ½ a bushel.

Still, this was not the performance that many traders had expected at a time when funds are due to start in earnest their rebalancing process, which takes weightings back to base levels – meaning 2009's laggards, such as grains, are bought and its stars, such as copper, sold.

The S&P Goldman Sachs Commodity Index rebalancing is due to start on Friday, with the DJ/UBS Index reweighting due for next week.

"Total buying in soybeans by the various index funds is estimated at 20,000 contracts over the next five to six trading sessions," US broker Benson Quinn Commodities said.

On Thursday, funds were viewed as sellers, at least in corn, of which they sold an estimated 5,000 contracts.

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