Wheat and Corn futures expanded their losses for the third consecutive trading session pressured by the strengthening US Dollar and the lack of the competitiveness of the US futures compared to their Eastern Europe alternatives.
Meanwhile, the Soybean futures rose to recover from its two week’s low, supported by the strong demand as well as the weather concerns in Brazil.
Oil futures rose significantly to settle at their several months’ high for the West Texas Intermediate futures and at their several years’ high for the Brent futures.
These gains came after Russia and Saudi Arabia, the world’s largest Oil producer, support for expanding the cuts for their crude Oil productions. Meanwhile, the stronger US Dollar and the eased concerns in Iraq kept these gains limited.
West Texas Intermediate December futures contract surged to settle higher at 54.16 US Dollars a barrel and Brent December futures contract rose sharply to end higher at 60.39 US Dollars a barrel.
CBOT Wheat December futures contract ended Friday’s trading session lower at 4.27 US Dollars a bushel to witness its third consecutive decline, Wheat December futures contract was trading at 4.26-1/2 US Dollars a bushel at 10:20 AM GMT.
Wheat futures expanded their losses for the third consecutive trading session to settle at its lowest close for the week. These declines came as the commodity is facing pressure from the strengthen US Dollar as well as the global ample supply in addition to traders’ expanding their short positions.
Furthermore, the competitive of East Europe’s alternatives are limiting the gains’ prospect for the US based commodity.
CBOT Corn December futures contract settled lower at 3.48-1/2 US Dollars a bushel and below its 14-day’s moving average, Corn December futures contract was trading at 3.49 US Dollars a bushel at 10:20 AM GMT.
Affected by the Wheat’s decline, Corn futures also fell for the third straight trading session pressured by Friday’s technical selling, the stronger US Dollar and the commodity’s ample supply.
The International Grains Council raised its forecast for 2017/18 world grain production due to the increase of the US Corn crop estimates.
CBOT Soybean January futures contract bounced of its two week’s low to settle higher at 9.85-1/2 US Dollars a bushel, Soybean January futures contract was trading at 9.92-1/2 US Dollars a bushel at 10:20 AM GMT.
Boosted by the strong demand as well as trader’s technical buying activity, Soybean futures managed to rally from its two week’s low.
Moreover, the dry weather in Brazil also lent support for the commodity after rising fears of a possible production shortages.
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