U.S. agricultural futures rise
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E-mail Xinhua, June 5, 2021
CHICAGO, June 4 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Friday, led by corn.
The most active corn contract for July delivery soared 20.75 cents, or 3.13 percent, to settle at 6.8275 dollars per bushel. July wheat rose 11.5 cents, or 1.7 percent, to settle at 6.8775 dollars per bushel. July soybean gained 34.5 cents, or 2.23 percent, to close at 15.8375 dollars per bushel.
CBOT agricultural futures soared on worrisome heat and dryness for the Central U.S. through mid-June as well as on better-than-expected demand, Chicago-based research company AgResource noted.
Should the warm/dry forecast for the U.S. Northern Plains and the northern half of the Midwest hold through the weekend, another round of buying will emerge Sunday night. The market risk stays to the upside with corrections offering new purchase opportunities.
Private Brazilian corn crop estimates continue to slide amid unfavorable weather with some early harvest data in Mato Grosso reflecting yield declines of well over 35 percent. AgResource has lowered its total Brazilian corn production estimate to 89.7 million metric tons.
The weekly U.S. Department of Agriculture (USDA) export sales report showed that China did not cancel any U.S. corn last week. In fact, China added 158,500 metric tons to its old crop purchases taking the total to a record large 14.7 million metric tons. China shipped out a record 1.11 million metric tons of corn in the week, and is forecast to ship out one million metric tons of corn per week into early August.
For the week ending May 27, the United States sold 20.9 million bushels of corn and 700,000 bushels of soybeans, with net cancellations of 1.2 million bushels of wheat in the 2020/21 crop year.
Weather forecast shows some rain for North Dakota but amounts have been again cut in half. Outside of the northern one-third of Minnesota, rain totals for South Dakota, southern two-thirds of Minnesota, Wisconsin, Iowa, Nebraska, and Kansas will be limited. A few popcorn showers could impact the Northern Plains, but otherwise, dry weather conditions will prevail into June 18.
As market concern for Central U.S. weather is increasing, AgResource stays bullish on agricultural futures. Enditem
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