U.S. agricultural futures close mixed
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E-mail Xinhua, July 14, 2021
CHICAGO, July 13 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Tuesday, with corn and soybean rising and wheat falling.
The most active corn contract for December delivery rose 7.75 cents, or 1.45 percent, to settle at 5.4075 dollars per bushel. September wheat fell 7 cents, or 1.09 percent, to settle at 6.3375 dollars per bushel. November soybean climbed 1.5 cents, or 0.11 percent, to settle at 13.5175 dollars per bushel.
CBOT agricultural futures basically followed through with post report rally on Monday. With 2021 Canadian drought forecast to worsen over the next two weeks, Chicago-based research company AgResource maintains that sparking new cash sales is going to be tough to find, and this will cause end users and importers to reach for supply in coming weeks by raising cash basis bids.
U.S. Northern Plains spring wheat crop was slashed to its lowest level in decades, and spring crops in Canada are in real trouble according to producer sources.
The Russian Weather Service pegged the country's wheat crop between 77-81 million metric tons. AgResource sees 2021-2022 Russian wheat exports at 36 million metric tons, down 4 million metric tons from the World Agricultural Supply and Demand Estimates (WASDE).
Weather forecast shows that showers/storms are expected to form across South Dakota and push east across Iowa late Wednesday/Thursday. The system will exit through the Eastern Midwest on Saturday before mostly dry weather follows as a cold front sags south into the Delta and Gulf States next week. This will produce an extended period of dry weather for the Canadian Prairies, Northern U.S. Plains and Upper Midwest.
WASDE's balance sheets reflect that losing 1 bushel per acre (BPA) of yield in soybeans or 4 BPA in corn produces new contract highs. World end users and importers are sitting on their hands hoping for lower prices, but their patience is wearing thin amid the dire Canadian drought. AgResource suggests buying rain inspired CBOT breaks. Enditem
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