Financial markets still in disruption after a spread of coronavirus, after suffering a loss in Monday’s, corn futures, soybeans, and wheat contracts firming by 0.5 percent.
In U.S weather forecasts, the latest precipitation map from NOAA showed another round of rain and snow entering the Corn Belt, the agency outlook mixed between March 3 and March 9, with some wetter conditions possible in the central Plains, while the Upper Midwest and eastern Corn Belt should remain relatively dry during this time.
In energy space, oil prices fell on Today’s session as the spread of a coronavirus in several countries outside China left investors worried about a hit to demand.
WTI oil contracts for April ended Tuesday session lower to settle at 50.10 USD and currently trading at 49.41 USD at 8:00GMT.
Moreover, Brent futures were lower ending the session at 54.99 and currently trading at 54.29 USD at 8:00 GMT.
Oil prices were trading down on Tuesday in the hours leading up to the data release, with the markets continuing their fears that the coronavirus outbreak is not yet contained, the virus is claiming lives in countries outside China as well, and more travel restrictions have been added as countries try to keep the virus out. Meanwhile, OPEC has not responded to the crisis with more output cuts.
CBOT Wheat March futures suffering losses after rises bargain buyers stepped in late in today’s session futures added 5 cents to settle at 5.40 USD per bushel, Prices were lower on today’s session and are currently at 5.35 USD per bushel at 8:00 GMT.
Winter wheat quality ratings improved slightly in the top U.S. production state of Kansas, with 35 percent of the crop in good-to-excellent condition as of February 24. Quality ratings also moved higher this month for Oklahoma and Colorado.
Ukraine’s winter wheat plantings eased 0.6 Percent to 18.78 million acres, but the country is expecting another big harvest later this year.
Preliminary volume estimates were for 156,566 CBOT contracts, drifting moderately below Monday’s final count of 209,262.
corn prices solidify fractionally Tuesday on a small technical bounce after dropping more than 1 percent yesterday. March and May futures each gained 0.25 cents to close at 3.725 USD for March and 3.765 USD for May.
On Monday, commodity funds were total sellers of corn, which decreased another 15,000 contracts.
Agricultural markets were under pressure as fears mounted that the coronavirus outbreak in China will grow into a pandemic after sharp rises in infections in South Korea, Italy and Iran and other cases found in the Middle East
Preliminary volume estimates were for 319,348 contracts, tracking 29 Percent below Monday’s final count of 447,808.
CBOT Soybean March futures prices were lower on Tuesday, Soybean futures ended the session at 8.79 USD per bushel, and currently trading at 8.78 USD per bushel at 8:00 GMT.
Commodity funds were net sellers of soybean 12,000, soymeal 3,500 and soyoil 10,500 contracts yesterday.
Preliminary volume estimates were for 200,727 contracts, spilling moderately below Monday’s final count of 293,458.
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