Wheat Rally Stalls on Stagnant World Cash Market: US wheat futures ended lower, with the rally pausing after funds have covered an estimated 14,000 contracts this week. Southern Hemisphere wheat areas will stay dry into late month, but otherwise there’s no sign of supply tightness in the world market. Global wheat demand and trade need…
CBOT Corn Ends Unchanged; New Input Lacking: CBOT corn futures ended flat. Follow-through buying interest was weak amid uncertainty over nearby Chinese purchases of US ag goods. Details surrounding US biofuel policy changes are also absent. ARC has discussed recently that unless combine data points to a US yield cut of more than 4-5 Bu/Acre,…
Soybeans Extend Gains In Late Week Trade: CBOT soybean futures pushed to new highs on Friday, with November soybeans briefly trading over $9 for the first time since mid-July. November and January contract gained 3.25 cents for the day while September expired at $8.8475 versus $8.21 a year ago. The Commitment of Traders report showed…
AgResource’s research suggests that already severe dryness in Argentina is trimming wheat yield potential. The attached graphic shows the correlation between September rainfall in Argentina and wheat yield’s performance against trend. The correlation isn’t overly tight, but it’s clear that more rainfall is better than less. This model suggests that Sep rainfall of 3” is…
Argentina Stays Dry Next Two Weeks; Brazilian Rainfall Expands in 10-14 Day Period?: The South American forecast is unchanged and completely dry through the next 9-10 days. However, the EU and GFS models agree that a more seasonal pattern of rainfall develops across the southern half of Brazil – and parts of Mato Grosso –…
