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 your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: prices rise as China fears ease

Twitter Linkedin eCard

So just how serious is the news of China's grain sale?

On Thursday, investors in Chicago flipped from phlegmatic to frenetic. Friday flipped them back again, helping crops recover some lost ground.

Near-term, August, soybeans rebounded 11 cents from their three-month low to stand at $9.87 a bushel at 05:45 GMT.

Corn, which closed the last session at a 2009-low, recovered 2.75 cents to $3.19 ½ a bushel.

'Not a surprise'

The market had "over-reacted" in sending prices down so far on news that China would sell 500,000 tonnes of soybeans, 1.2m tonnes of corn and 750,000 tonnes of wheat from state inventories next week, Paul McKay, a director of Commodity Broking Services in Australia, said.

"China's move isn't a surprise and soybean stocks are still pretty tight," he told Reuters, the news agency.

"Fundamentally nothing has changed."

And, as traders have repeatedly pointed out, prices for China's sale may be uncompetitive, with soybeans going for $549 a tonne, equivalent to nearly $15 a bushel.

(Some sceptics have said that China's move is really an effort to collapse Chicago prices so that it can continue its shopping spree of US beans – which has set a record this year – more cheaply.)

Wheat edges ahead

In fact, Thursday had offered some upbeat signals, such as robust export sales for corn, at 1.17m tonnes, and soybeans, at 684,000 tonnes - 636,000 tonnes of which were bound for China.

Wheat's were the least impressive at 442,000 tonnes, in line with market ideas. Nonetheless, the grain on Friday remained aloof from the volatility in neighbouring pits, adding 4.75 cents to $5.38 a bushel for September delivery

A cut by the Buenos Aires Grain Exchange of its estimates for Argentina's wheat plantings, to 2.75m hectares from 2.80m hectares, has been viewed as helpful.

Monsoon factor

In Kuala Lumpur, palm oil returned to the upward path, helped by soybeans' better performance and hopes for stronger demand.

The forthcoming Ramadan period is often viewed as potentially good for consumption, given the feasting that follows the festival's fasting.

The on-off monsoon is also viewed as potentially raising sales to India, which on Thursday revealed that the resumption of rains had come too late to save sugar cane and rice, at least, from some losses.

Benchmark September palm oil closed the morning session on Bursa Malaysia's derivatives exchange up 1.7% at 2,055 ringgit a tonne.

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

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069