U.S. agricultural futures rise
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E-mail Xinhua, January 26, 2021
CHICAGO, Jan. 25 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Monday, led by soybean.
The most active corn contract for March delivery rose 11 cents, or 2.2 percent, to settle at 5.115 dollars per bushel. March wheat climbed 14 cents, or 2.21 percent, to settle at 6.485 dollars per bushel. March soybean gained 31.75 cents, or 2.42 percent, to close at 13.435 dollars per bushel.
CBOT futures rallied sharply on commercial buying, Chicago-based research company AgResource noted.
Weekly U.S. Inspections for the week ending Jan. 21 were 54.8 million bushels of corn, 72.7 million bushels of soybeans and 19.2 million bushels of wheat. China loaded 44.5 million bushels of U.S. soybeans or 1.2 million metric tons. China will load an average of 1.9 million metric tons of soybeans during the year.
For respective crop years to date, the United States has loaded 1,664 million bushels of soybeans for the entirety of the 2019-2020 crop year, up a record 79 percent. The United States has now exported 83 percent of U.S. Department of Agriculture (USDA) Annual U.S. export estimate.
The United States also shipped out 737 million bushels of corn, up 84 percent year on year; and 591.5 million bushels of wheat, down 1 percent.
Brazil has harvested less than 1 percent of its soybean crop, well below historical averages due to latent seeding dates amid the September-November drought. The bulk of the Mato Grosso soy harvest will not be occurring until the third week of February. AgResource doubts that Brazil will be a sizeable soybean exporter until the opening days of March.
Weather forecast shows it is slightly drier across Eastern and Central Brazil, but wetter across Paraguay, Parana and all of Southern Brazil. The excessive rain in Southern Brazil will slow the harvest and cause widespread soybean rust outbreaks. Far Northern Argentina will also be in this wet pattern. Central and Northern Brazilian dryness is edging soybean yield potential lower.
Recent CBOT price action points to the heightened volatility that may continue. AgResource holds that the worrisome delay in soybean harvest in Brazil is adding to the upside CBOT price potential. Enditem
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