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

Morning markets: crops await technical rally

Twitter Linkedin eCard

Agricultural commodities made a mixed start to Tuesday, waiting for an anticipated rally, sparked by technical factors, to begin to make a significant impact.

The closing of the Reuters-Jeffries CRB commodities index on Monday at a four-month high of 232.38 was viewed by some observers as a strong buy signal. The index had previously approached 230 only to bounce lower.

"The CRB commodities index last night broke out of the trading range and that could prompt an influx of new capital into the commodities markets," said Doug Whitehead, ANZ's agricultural commodity strategist.

In theory, the biggest beneficiaries would be commodities with fundamental reasons to buy, as well as technical ones.

"It could well benefit soy further," Mr Whitehead said.

Export support

Soybeans were indeed ahead in Chicago, adding 11.75 cents to $11.24 a bushel for the May contract and smaller amounts for new crop deliveries.

Strong export data from the US, showing 18m bushels inspected rather than the 10-12m forecast, underpinned the crop.

However, its vegetable oil partner, palm oil, succumbed to a touch of profit-taking following Monday's 4.1% rise. Bursa Malaysia's benchmark July contract stood 8 ringgit lower at 2,694 ringgit a tonne.

A weaker oil price, with Brent off 41 cents at $54.17, only encouraged traders to seek safety.

Planting data

And wheat and corn were not too far ahead, despite some modestly supportive planting data too.

May corn was 2 cents higher at $4.00 ½ a bushel, with future contracts showing similar gains. September corn, for instance, added 2.5 cents to $4.17 a bushel.

May wheat added 1.5 cents to $5.40 a bushel, with its September comrade 1 cent higher at $5.79 ½ a bushel.

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