CHICAGO, Aug. 10 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures ended this past trading week higher, and traders tried to square their positions ahead of a key monthly crop report to be released next Monday.

CBOT futures were obviously in search of fresh direction amid escalating trade tensions between the United States and China, and looming weather risks that could impact the U.S. crop supply.

The most active corn contract for December delivery was up 8.25 cents, or 2.01 percent week on week, to close at 4.1775 dollars per bushel. September wheat was up 8.75 cents, or 1.78 percent, to settle at 4.995 dollars per bushel. November soybeans were up 23.25 cents, or 2.28 percent, to close at 8.9175 dollars per bushel.

China's Ministry of Commerce said earlier this week that related Chinese companies have halted purchases of U.S. farm produce. The move came after the United States announced the plan to impose additional 10-percent tariffs on 300 billion U.S. dollars worth of Chinese imports, which seriously violated the consensus reached by the two countries' heads of state in Osaka, Japan.

Following the announcement, the United States now lacks a "big buyer" for its goods, commented AgResource, a Chicago-based Agricultural research firm.

"U.S. agricultural export demand looks to remain sparse and domestic demand is not a lasting price driver," it added in a market analysis.

A downbeat weekly export sales report from the U.S. Department of Agriculture (USDA) added pressure to CBOT futures, which fell across the board on Tuesday.

The latest data showed that inspected and weighed volumes of corn, wheat and soybeans for export all fell in the week ending Aug. 1, compared with the previous seven days.

According to another USDA crop progress report, 82 percent of U.S. winter wheat has been harvested as of Aug. 4, with 8 out of 18 winter wheat growing states have finished their harvest.

Meanwhile, 73 percent of spring wheat was rated in good/excellent condition, the same as previous week.

More supplies, good crop conditions, plus a stronger U.S. dollar, weighed heavily on CBOT wheat futures, said market analysts.

However, rising concerns about prolonged dry weather affecting the U.S. Midwest reversed the downtrend in CBOT market.

After excessive rainfall and even flooding during this past spring already delayed corn and soybean planting in U.S. Midwest, late seeded crops now may face further stress if the current dry weather pattern persists in the coming weeks, said experts.

"The weather risks are looming," said Virginia McGathey, analyst with McGathey Commodities.

Besides the weather woes, market participant now have their eyes on the USDA August agricultural supply and demand estimates report, which will include updated corn and soybean acreage figures and the first yield survey of the year.

CBOT traders have positioned themselves ahead of such a key report to be released on Monday, said market watchers. Enditem

Related

Go to Forum >>0 Comment(s)