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 pause as dollar stabilises

Twitter Linkedin eCard

The rally in crop prices fuelled by strong US economic data petered out in Asian trading hours, as the dollar stabilised and the prospect remained of decent harvesting weather in the US.

Investors' renewed appetite for risk abated somewhat as investors turned to the next set of US economic data for confirmation of how far out of the woods America really is.

Friday will bring University of Michigan consumer sentiment survey for October and the Institute of Supply Management Chicago's October index for manufacturing activity.

The dollar stabilised, denying export goods such as crops the support of a cheaper currency, which makes them more competitive purchases.

While shares continued to rise, with Tokyo's Nikkei index rebounding 1.4% to close back above 10,000 points, that was a matter of playing catch up after Thursday's 2% gains on Wall Street.

EU exports flag

What news on fundamentals appeared overnight was of modest significance, in sentiment-changing terms.

Weekly data showed the European Union clearing 229,000 tonnes in wheat exports, the lowest figure since for nearly three months.

Forecasts remained pretty decent for the US corn and soybean harvests, which are running at their latest since records began in 1985, thanks largely to persistent rain.

Meterologix's forecast for the Midwest said: "Rains again slow the harvest down during the next few days, especially south and east areas.

"The outlook for next week is more promising as it looks to be mostly dry and possibly much warmer."

December wheat added 0.25 cents to $5.04 a bushel in Chicago, as of 07:40 GMT while corn lost 2 cents to $3.77 ½ a bushel.

Soybeans eased 4.75 cents to $9.80 ¾ a bushel.

Production expectations

In Kuala Lumpur, palm oil also eased, although not by much, amid lingering concerns over a rise in stocks in Malaysia, the world's second biggest producer of the vegetable oil.

According to Reuters, traders expect Malaysian exports for October to hit 1.2m tonnes, but forecast stocks rising to 1.65m tonnes thanks the rise in production which typically occurs towards the end of the calendar year.

There had been thoughts over the summer that drought stress, after last year's bumper crop, coupled with potential weather damage should El Nino strike hard would depress yields.

The benchmark January palm oil contract closing the morning session on the Bursa Malaysia Derivatives Exchange down 9 ringgit at 2,180 ringgit a tonne.


Twitter Linkedin eCard
Related Stories

Morning markets: Wheat futures stage notable rebound. Other ags less so

Downbeat US crop ratings help wheat futures to respectable revivals, after the last session’s plunge. But trade war worries slow corn, soy, cotton recoveries

Evening markets: Wheat futures plunge limit down, as funds close ag bets en masse

Hard red winter wheat tumbles 6.0% at one point, after rains refresh US crops. Argentine rains hurt soybeans too. But fund flight benefits some ags

Offers to Iraq tender underline competitiveness of Australian wheat

OK, Australian offers do not in Iraq’s tender face Black Sea rivalry. But they are in close price contention with Russian supplies anyway

Currency 'most important factor' for UK farm profitability

Andersons Farm Business Consultants highlights the role of foreign exchange in influencing farmers’ financial welfare
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