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 nervous ahead of US report

Twitter Linkedin

Chicago crops firmed in electronic trading on Friday, but traders said the rise reflected position covering ahead of a key US report due later rather than any real appetite by investors.

All near-term contracts were higher. July corn added 4 cents to $3.47 ½ a bushel, with soybeans up 4.5 cents at $11.15 a bushel and wheat bringing up the rear, up 0.25 cents at $4.94 ½ a bushel.

Soybeans and corn were ahead on better-traded forward lots too. New crop November beans, for instance, added 6 cents to $9.22 a bushel, with December corn gaining 3.5 cents at $3.43 ½ a bushel.

Forward wheat contracts were easier, but not by much.

'Technical bounce'

But traders urged caution about reading too much into movements ahead of the US Department of Agriculture's latest world crop supply and demand estimates, due at 12:30 GMT.

"It is more of a technical bounce," Tim Glass, global head of commodities at National Australia Bank, told Reuters, the news agency.

Nonetheless, Mr Glass remained optimistic that a recovery in prices was on its way, with corn and wheat futures approaching levels which are, in his view, oversold.

"There's nothing to say that this market can't bounce 20 or 30 cents as people want to close out and take profit on shorts - there's been a lot of new shorts that have been riding this thing down,"

'Some hope now'

Traders viewed a modest improvement in palm oil as more convincing, following data showing a 45% rise in Malaysian exports of the vegetable oil, and associated product.

Intertek Testing Services, the cargo surveyor, estimated shipments at to 419,000 tonnes for the first 10 days of July, up from 289,000 a month before.

Benchmark September palm oil closed the morning session on Bursa Malaysia's Derivatives Exchange up 9 ringgit at 2,056 ringgit per tonne.

And that was before data from the Malaysian Palm Oil board showing a lower-than-expected rise in stocks.

"There is some hope now," a trader said.

"The June palm oil stocks report that came out after the market closed shows a less impressive increase and prices should recover more."

Twitter Linkedin
Related Stories

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

December makes poor stab of bringing festive cheer to ag bulls

This might have been the month when grain prices began a "breakout", higher. Instead, ag prices are hitting their lowest in at least 26 years

Morning markets: Wheat futures set fresh contract low

... dragging on the corn market, amid selling ahead of a key US report. The Argentine weather outlook depresses soybean prices

Soft commodities better bets than grains for 2018, says Commerzbank

Indeed, investors are overrating prospects for corn and wheat futures. But cocoa futures have scope for gains, and coffee could see a "price surge"
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

© 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