U.S. agricultural futures fall
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E-mail Xinhua, March 2, 2021
CHICAGO, March 1 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures fell across the board on Monday, led by corn.
The most active corn contract for May delivery plunged 9.25 cents, or 1.69 percent, to settle at 5.3825 dollars per bushel. May wheat lost 10 cents, or 1.51 percent, to settle at 6.5025 dollars per bushel. May soybean shed 13 cents, or 0.93 percent, to close at 13.9125 dollars per bushel.
CBOT futures sagged on fund liquidation, Chicago-based research company AgResource noted.
Wheat sagged on large wheat deliveries and lackluster U.S. wheat export demand. With Brazil now exporting 2.5-3.0 million metric tons of soybeans a week, the U.S. demand driver has been lost. Cheaper Argentine corn and Brazilian soybeans are stealing the demand from the United States.
For the week ending Feb. 25, the United States exported 64.5 million bushels of corn, 32.3 million bushels of soybeans and 10.0 million bushels of wheat. Weekly U.S. corn and soybean exports were above trader expectations. China last week shipped out 11.3 million bushels or 38 percent of the U.S. soybean export total.
For respective crop years to date, the United States has exported a record 1,906 million bushels of soybeans, up 76 percent year on year; 1,010 million bushels of corn, up 81 percent; and 663 million bushels of wheat, down 4.2 percent.
Corn crop in Argentine has already been hurt by extreme heat and dryness in December during pollination; it is now being stressed by like weather and could endure significant yield losses. Winter corn seeding in Brazil is the slowest in a decade with losses likely. The Brazilian winter corn crop will be of utmost importance to world corn valuations in April and May.
Weather forecast maintains warm to hot temperatures in Argentine. The heat and dryness in Argentine will stress reproducing corn and soybean crops. And above normal rainfall will further slow soybean harvest and winter corn seeding in Brazil. Weather leans bullish.
Supply driven markets are more volatile than a demand driven bull with futures at 8-year highs. AgResource holds the bull market is not completed yet. Enditem
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