After Memorial Day weekend, Commodity futures ended the session lower on Tuesday. Soybean futures touched their 14 month lows, meanwhile corn and wheat also traded lower on Tuesday due to positive forecast for U.S farming.
Forecasts put scattered showers and cool weather in the Midwest the next few days, which should help the newly planted crops. The three-day holiday weekend was fairly dry in the Midwest, which allowed farmers to either finish planting or tend newly sown fields.
The latest 6- to 10-day outlook (June 5-9) is drier for the northern portion of the Midwest with seasonal rain in southern area. Cool weather is expected for the eastern half of the country then.
Exports – USDA, Reuters:
- USDA said 4.8 million bushels of 2016/2017 soybeans were sold to unknown destinations.
- Weekly export inspections, mln bu (est, previous week): corn 47 (37-49, 46); soybeans 12.3 (9-16, 13) and wheat 22.2 (16-23, 24.8)
- Jordan bought 50,000 metric tons of optional-origin hard wheat at $204 per ton, c&f for first –half October shipment.
- Malaysian importers bought about 60,000 metric tons of Black Sea corn recently at about $187 a ton, c&f for November/December shipment.
- Philippines feed makers seek to buy up to 200,000 metric tons of South American soybean meal for October to January shipment. The tender concludes on Wednesday.
Oil price Prices fell on Wednesday for the second consecutive session, pressured by an increase in production by Libya, with already fast-paced production in the United States increase the in the risk of depressing OPEC supply cut deal that’s objective is to balance the market and increase oil prices.
Recent reports expects Libya output to increase by 800,000 barrels per day this week, adding to an already oversupplied market.
U.S Oil futures dropped 0.6 percent on Wednesday to trade at 49.34 dollars per barrel.
CBOT Wheat July future ended Tuesdays session lower by 0.8 percent to trade at $4.34-1/2 a bushel.
Wheat Futures lost gains made in previous session as futures fell by 0.8 percent on Tuesday compared to a rise of 1.9 percent in the previous session. The drop in prices came after reports of positive expected crop forecasts for U.S yields.
Drier weather is nearing in the United States thus adding support for maturing wheat.
CBOT Corn futures contract were down 0.9 percent to end Tuesdays session at $3.70-3/4 a bushel a bushel.
Corn futures end Tuesday’s session lower pressured down by prospect of good planting weather and ample global supply.
USDA’s progress report said that 91 percent of U.S corn has been planted compared to a five-year average of 93 percent.
In term of rating USDA gave U.S corn crops a rating of 65 percent good/excellent.
CBOT Soybean future contracts tumbled by 1.4 percent in Tuesday’s session to end at $ 913-1/4 a bushel.
Soybean future ended Tuesday in red territory after hitting its lowest point in 14 months during the session. Prices were pressured down by prospects of good weather aiding framers in completing their yields as excessive rain isn’t expected to interrupt planting. Moreover, record yields in South America also weighed on soybean prices.
Traders will keep a cautious eye on weather condition and on any updates regards the political investigation in Brazil.
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