U.S. agricultural futures rise
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E-mail Xinhua, December 30, 2020
CHICAGO, Dec. 29 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Tuesday, led by soybean.
The most active corn contract for March delivery rose 9.5 cents, or 2.08 percent, to settle at 4.66 dollars per bushel. March wheat gained 4.25 cents, or 0.69 percent, to settle at 6.185 dollars per bushel. March soybean soared 38.75 cents, or 3.08 percent, to close at 12.96 dollars per bushel.
Firm energy prices and U.S. dollar weakness pushed buying back into agricultural products. A "buy the break" mentality will be the feature of CBOT unless a pattern of soaking rainfall between now and early February across Central and Northern Brazil can be confirmed, said Chicago-based research company AgResource.
A resolution to Argentina's port worker strike is possible later Tuesday. But the message is that a strike resolution will not suddenly give the world marketplace access to more new supply, AgResource noted.
Interior U.S. corn basis continues to strengthen. Corn's export demand pull will be incredible from February onward, AgResource predicted.
The U.S. Department of Agriculture did not report new export sales. But China is expected to return to the U.S. soybean market in January ahead of its lunar New Year, which begins Feb. 12. Moreover, China has on the books 7 million metric tons of Brazilian origin soybeans scheduled to ship in February.
Weather forecast shows that it is drier in Argentina and in pockets of Mato Grosso do Sul and Goias in Central Brazil. Overall pattern is that a 5-6 day period of complete dryness now dominates Mato Grosso and Goias before scattered showers return next week. La Nina's grip on Argentina persists, with little or no precipitation offered to the country's primary corn/soybean belt into Jan. 10. Argentine crops are in trouble if the pattern fails to change beyond the next two weeks.
This bull market is rather structural in nature and record Northern Hemisphere crops are required to resolve supply issues. AgResource predicted that the rally will accelerate in January if there are no soaking rainfalls in South America. Enditem
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