U.S. agricultural futures rise

0 Comment(s)Print E-mail Xinhua, April 27, 2021
Adjust font size:

CHICAGO, April 26 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Monday, led by corn.

The most active corn contract for July delivery rose 25 cents, or 3.95 percent, to settle at 6.575 U.S. dollars per bushel. July wheat climbed 27.25 cents, or 3.83 percent, to settle at 7.395 dollars per bushel. July soybean gained 23.25 cents, or 1.53 percent, to close at 15.3925 dollars per bushel.

CBOT corn, soybean and wheat futures posted new contract highs. Corn is up the 25-cent limit in both the May and July futures contracts. The premium of July to December corn is 89 cents with the spread to May being 1.125 dollars, Chicago-based research company AgResource noted.

The first notice day, falling on Thursday, combined with premium cash markets, is causing the frenzied buying. Cash corn bids are well above 7.00 dollars and not finding much cash selling. A bullish market tone persists with forced short covering by margin clerks adding to the upside.

For the week ending April 22, the United States exported 76.8 million bushels of corn, 8.6 million bushels of soybean and 20.7 million bushels of wheat. The corn and wheat exports were above trade expectations.

For respective crop years to date, the United States has exported 1,623 million bushels of corn, up 84 percent from last year; 2,031 million bushels of soybean, up 65 percent; and 830 million bushels of wheat, up one percent. The U.S. corn and soybean export pace continued to outpace the U.S. Department of Agriculture (USDA) annual forecast.

Whether the wheat is Eastern European or Russian will be closely followed based on Russia's floating export tax. The higher the world wheat market rises, the larger the tax. AgResource sees little chance that world wheat prices will drop to 200 dollars per metric ton or below during harvest.

Weather will remain dry for Parana, MGDS, Goias and Mato Grosso for the next 10 days. The forecast calls for a deepening flash drought which will cut winter corn yields. AgResource' concern for the 2021 Brazilian winter corn crop stays elevated with a downward yield bias.

There is no evidence of U.S. demand rationing with China said to be asking for offers in U.S. corn/new crop wheat. AgResource stays bullish over CBOT outlook. Enditem

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter