U.S. agricultural futures rise

0 Comment(s)Print E-mail Xinhua, September 16, 2021
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CHICAGO, Sept. 15 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Wednesday, led by corn.

The most active corn contract for December delivery soared 13.25 cents, or 2.55 percent, to settle at 5.335 dollars per bushel. December wheat rose 11.5 cents, or 1.64 percent, to settle at 7.1225 dollars per bushel. November soybean gained 12 cents, or 0.94 percent, to settle at 12.945 dollars per bushel.

Corn and wheat led the upward charge for the second day in a row. December corn is testing its 20-day moving average at 5.33 dollars, with the 50-day moving average at 5.44 dollars and the 100-day moving average at 5.56 dollars.

The world has lost more than 60 million metric tons of grain since March amid the Brazilian winter corn drought, a Canadian drought, and Russian drought. Meanwhile, early U.S. corn harvest yield data is casting doubt on the size of the U.S. summer row crop harvest. End users are extending forward coverage and new speculative buying is eyeing the bull opportunity, Chicago-based research company AgResource noted.

AgResource holds that any loss of 2021 U.S. corn and soybean crop will be amplified due to world losses and record low exporter corn and wheat stock/use ratios.

AgResource learnt that China secured at least 8 cargoes of Brazilian soybeans for late September/October. This shift of demand is likely due to the Gulf woes due to Ida, and China's short bought position in the soybean market.

On average, U.S. farmers have sold at least 50 percent of their 2021 summer row crop production and on farm storage can hold the rest.

Early corn harvest data continues to be disappointing with disease laden fields yielding 10-40 bushels per acre (BPA) less that field surveys and farmer expectations. AgResource estimates that 7-8 percent of the U.S. corn crop is cut, but that harvest must reach closer to 20 percent for a more accurate U.S. yield trend.

The National Oilseed Processors Association (NOPA) reported that its members crushed 158.8 million bushels of soybeans in August, above the July crush rate of 155.1 million bushels and trade estimates of 154-155 million bushels. Last year the United States crushed 165 million bushels.

It's just too early to make any assessment of soybean yields. It will be another week or 10 days before a yield trend can be discerned. Enditem

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