U.S. agricultural futures close mixed
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E-mail Xinhua, September 15, 2021
CHICAGO, Sept. 14 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Tuesday, with corn and wheat rising and soybean slipping slightly.
The most active corn contract for December delivery rose 7 cents, or 1.36 percent, to settle at 5.2025 U.S. dollars per bushel. December wheat soared 13.75 cents, or 2 percent, to settle at 7.0075 dollars per bushel. November soybean slipped 2.25 cents, or 0.18 percent, to settle at 12.825 dollars per bushel.
A smaller French wheat crop, a smaller Canadian wheat crop, and early U.S. corn yield trends that are disappointing relative to field checks and producer expectations have lifted CBOT prices. World wheat and corn exporter stock/use ratios are record low, and the world is counting on the U.S. corn and soybean crop to pressure FOB valuations. Chicago-based research company AgResource holds that the downside price risk is limited.
Though the tone of the CBOT is more bullish than any day since late August, AgResource also warned that seasonal lows often occur over weeks, while summer highs can occur in a day.
Statistics Canada estimated its 2021 crops to be down sharply following an acute summer drought with production losses of 28 percent to 70 percent when compared to 2020.
Statistics Canada also dropped 2021 all wheat estimate to 21.7 million metric tons compared to early season estimates of 32 million to 33 million metric tons and last year's harvest of 35.2 million metric tons.
AgResource is looking for further falls in Canadian crop production as actual harvest yield data is tallied. There is no doubt that Canada will have an acute shortage of feed this winter and likely will import a record 5 million to 6 million metric tons of U.S. corn.
Early combine yield reports in the United States are disappointing on corn, and too limited on soybeans to make any comment. Additional combine reports are needed. And it will be next week before the U.S. Midwest soybean harvest shifts into a higher gear with yield comments to be offered. Enditem
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