Wheat futures in the Chicago Market rose this Friday after the news that China canceled more purchases of the US cereal, bringing the benchmark contract to a 3.5-year low; meanwhile, the futures of corn and the soy rose after the monthly supply and demand report of the United States Department of Agriculture (USDA), analysts said.
At the closing wheat to May of the Chicago Board of Trade (CBOT), rose 13.5 cents to $5.42 a bushel. He corn in May it rose 1 cent to $4.39 a bushel and soybeans in May rose 6.75 cents to $11.73 a bushel.
Wheat saw the biggest percentage move, rebounding from a multi-year low. Commodity funds hold a large net short position in U.S. wheat futures. CBOT, which leaves the market open to episodes of short position covering.
The incidence of China
The values had fallen after the USDA said that China canceled purchases of 240,000 metric tons of U.S. red winter wheat on Thursday and Friday, following a drop in prices following a buying spree by Chinese importers last year.
Concerns about global demand for US wheat continued to weigh on the market. In its monthly report on supply and demand, the USDA lowered its 2023/24 grain export forecast to 710 million bushels, down from 725 million previously.
The markets of corn and soy showed little reaction to the USDA report. The agency slightly cut its estimates for the soybean crop Brazil, world soybean stocks and world corn stocks.
But his forecast for the harvest of soy of Brazil, of 155 million metric tons, was above the average estimate of analysts surveyed by Reuters.
“It’s a neutral report, nothing out of this world,” he said. Ted Seifriedchief market strategist at Zaner Group. The futures of corn, soybeans and wheat CBOT prices are near their lowest levels since 2020, anchored by competition from strong global grain supplies.
The agricultural sector aims to achieve a production of 3 million tons of soybeans
He agricultural sector aims to once again produce 3 million tons of soy. Looking ahead to 2024, the agro maintains good expectations and aspires to reach that figure, at a time when between 10 and 15% growth is expected with respect to the last harvest, in which 1.23 million hectares were planted according to data from Urupov.
Although official data show that the surface area of the oilseed in Uruguay It is 1.06 million hectares, in the sector it is believed that this number will be higher and may reach 1.25 million.
The director of the Las Lechuzas agricultural company and advisor in Durazno, Nicolás Naredo, told Revista Verde that soybeans, both first and second sown on spring rapeseed “are the crops that come better.”
In dialogue with the same medium, Diego Guigou, ADP agricultural production manager, admitted that the delay in sowing causes a lower yield potential, which is why he points to an improvement in productivity.
“Although an important part of the soybean area was planted later, the rainy prospects encourage good productivity and will be the one that will have to pay for the drop in grain prices, which is worrying,” said Guigou.
Source: Ambito
