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

Morning markets: crops dented by dollar rebound

Twitter Linkedin

US farm commodities retreated in early deals on Thursday after the dollar and oil, two major allies in crops' recent rally, turned against them.

The dollar rebounded off a 14-month low against major currencies after Chinese economic data failed to produce any surprises, showing growth at 8.9%.

The greenback's strength, which took the euro dip back below $1.50, made American exports such as crops more expensive on export markets.

Oil paused for breath, losing 0.6% to $80.85 a barrel, after being boosted on Wednesday by data showing a larger-than-expected draw on US petrol reserves.

Lower oil prices make less of a case for alternatives, such as ethanol, made from crops.

Fund buying

While weather remains unfavourable US farmers, with rain interrupting harvesting in many areas, this has been reflected in the jump in prices over the last few weeks.

Furthermore, the funds apparently getting back into crops – reportedly buying 15,000 corn contracts and 5,000 wheat lots on Wednesday – appear to be doing so in US trading hours.

December corn slipped 3.25 cents to $3.95 a bushel in Chicago, with November soybeans down 7.75 cents at $10.00 ¾ a bushel.

Wheat lost 8 cents to $5.34 ½ a bushel for December delivery, for once widening its discount against its Kansas peer, which slipped 6 cents to $5.40 a bushel.

'Losing momentum'

Palm oil did better in Kuala Lumpur, playing catch up with Wednesday's weather-inspired jump in US crops, which sent soybeans – palm's vegetable oil rival – up 2.6%.

Benchmark January palm oil gained 2.6% itself before retreating somewhat to close the morning session on the Bursa Malaysia Derivative Exchange up 41 ringgit at 2,209 ringgit a tonne.

A trader told Reuters, the news agency: "Looking at overnight rise in crude oil and soybean, our market should be on fire.

"But it looks like the end of the first session, the market is kind of losing momentum."


Twitter Linkedin
Related Stories

Abares lifts hopes for sugar futures, but cuts its cotton price forecast

A downgrade to Australia curtails an upgrade in world sugar output expectations. But for cotton, Abares ditches ideas of a global production deficit

Evening markets: Ags poop party lifting other commodities, shares

Wheat futures set another contract low, while arabica coffee hits its weakest close but one in 19 months, despite buying in other asset classes

Australia cuts wheat export hopes, pegs canola shipments at 7-year low

The country’s Abares bureau sees a dent to wheat shipment prospects from a smaller harvest, but lifts expectations for coarse grain exports

Hedge funds turn net bullish on ags - ahead of price drop to historic low

Speculators are wrong-footed in soymeal, in which they hike bullish bets just before a price tumble. But they fare better in cotton and cocoa
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