Corn, soybeans and wheat once again traded lower in the futures market, as a result of the United States Department of Agriculture projections.
The Chicago futures market once again recorded declines in the main grains.
Photo: Reuters
The futures of the main grain weakened again today in the Chicago marketand closed at the lowest levels of the last three years in USAdue to the abundant supply currently available.
The main cause of the decline in futures was the productive perspectives presented at the Agricultural Outlook Forum of the United States Department of Agriculture (USDAfor its acronym in English), which projected a 17% increase in final wheat stocks for the USA towards the end of the 2024/25 harvest.
To the weakening of prices brought about by the USDA report, we must add that wheat exports in the Black Sea are robust, something that reduces the completion of business in USA and deepens the declines. Thus, the contract of wheat (03/24) fell 3.15% ($6.80) to $208.34 per ton.
The USDA also estimates a 17% rise for the stock of corn, meaning a robust, although not record-breaking, harvest. This Thursday, the corn contract (03/24) fell 2.56 dollars (1.53%) to 164.46 dollars per ton.
Refering to soy, the US government portfolio expects the final stock to rise up to 38% by the end of the current harvest, putting downward pressure on the price. However, the National Oilseed Processors Association (NOPA, for its acronym in English) reported that January grinding was lower than expected, something that could set a limit to losses. The soybean contract (03/24) fell 0.70%, that is, 3.03 dollars, to 427.05 dollars per ton.
“Many of these markets are oversold”
U.S. grains and soybeans are facing stiff competition for U.S. export business. South America and the Black Sea region. The firm dollar, which hit a three-month high this week, also makes U.S. agricultural products more expensive for importers.
Arlan SudermanStoneX’s chief commodities economist, stated that “many of these markets are oversold” and that “managed money is holding massive short positions,” so “so far there is no news that is causing concern among these money managers and make them change their positions.”
“What can you say when you have a surplus of more than 2.5 billion in corn and 435 million in soybeans? It’s actually not bullish at all,” he said. Don Roosepresident of the US Commodities brokerage.
Source: Ambito
