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: crops rise as dollar grip relaxes

Twitter Linkedin

Crops did their best to put Turnaround Friday into Chicago trader's vocabulary, recovering some ground lost in the last, torrid session.

The dollar helped, by giving back some of the ground grained on Thursday, when its jump was viewed as the main reason for falls of 3%+ in the main Chicago food commodities.

Against the euro, the greenback weakened near to $1.44 by 07:45 GMT, well below the $1.51 levels of two weeks ago, but recovering 1 cent on the day.

A weaker dollar makes US exports such as crops more competitive.

Oil chipped in with a 0.4% rise, beginning to show something of an upward trend.

That helps food commodities, many of which, including corn, soybeans and wheat, are used to make biofuels.

Argentine sowings

And all three crops made headway, overcoming some small fundamental roadhumps. Overnight, the Buenos Aires Grains Exchange raised its estimate for Argentina's corn plantings by 75,000 hectares to 1.95m hectares.

In China, soybean prices eased 0.3% on the Dalian exchange.

Prices in China, the world's biggest soybean buyer, are being keenly watched as a sign of domestic market pressures, which have prompted Beijing to take a look at releasing some of its food commodity stockpiles.

Traders are also bracing for a switch in Chinese purchases from the US to South America, when Argentine and Brazilian crops come onstream early next year.

January soybeans rebounded from a six-week closing low by 6.75 cents to $10.28 ¾ a bushel, with March corn up 1.75 cents at $3.98 ¾ a bushel.

March wheat added 5 cents to $5.23 ½ a bushel.

'Market unpredictable'

Nonetheless, analysts warned investors to be on their guard, given the wind-down into the Christmas period.

"The market has become unpredictable for now," Justin Kelly at broker eHedger said.

Mike Mawdsley at rival Market1 said he "wouldn’t rule anything out in this volatile environment", noting that soybeans had in 24 hours covered nearly its entire trading range over the last month.

"Get used to it folks," he added.

By Agrimoney.com

Twitter Linkedin
Related Stories

Evening markets: South American double whammy brings ags back down to earth

Ags lose early gains, undermined by a tumble in Brazil’s real, and falling rain in Argentina. Still, wheat futures remain in positive territory

Can cotton prices extend their rally?

History suggests futures will not stay long in the 70s cents a pound. So which way will they trend?

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
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