Agricultural Commodities prices were mostly higher on Tuesday, erasing another portion of last week’s steep cuts on another round of technical buying today.
In weather news, according to the latest 72-hour cumulative precipitation map from NOAA, a lot of rain for parts of the Mid-South and Southeast is still expected, with some snow possible in the Northern Plains and upper Midwest through Friday. The agency’s latest 8 to 14-day outlook assumes warmer-than-normal conditions from March 10 to 16, with seasonally wet weather likely during that time.
In energy space, Oil prices rose on expectations that major producers have moved closer to an agreement to enact deeper output cuts aimed at offsetting the collapse in demand caused by the coronavirus outbreak.
U.S. (WTI) futures were at 47.155 USD per barrel and currently trading at 47.93 USD at 11:00 GMT.
International Brent futures were at 51.81 USD per barrel and currently trading at 52.58 USD at 11:00 GMT.
CBOT Wheat May futures rose to $5.28 on Tuesday’s session on a round of technical buying partly pushed by a weakening U.S. Dollar – although prices still remain stiffly competitive overseas.
USDA raised its quality ratings by 8 percent from a week ago in Kansas, with 43 percent of the state’s crop now in good-to-excellent condition. Texas – the No. 2 production state – also saw an increase in crop quality ratings, moving from 31 percent in good-to-excellent condition a week ago up to 36 percent as of Monday.
Preliminary volume estimates were for 130,775 CBOT contracts, tracking slightly below Monday’s final count of 144,781.
CBOT Corn May futures rose to $3.81 on Tuesday’s session, as technical buying pushed prices closer in line to what they were before the coronavirus scare descended on the market.
Corn basis bids held mostly steady across the central U.S. but did move 6 cents higher at an Illinois river terminal today. Farmer sales remain slow on hopes that Monday’s rally will stretch out further into the week.
South Korea purchased nearly 5.2 million bushels of corn from optional origins in an international tender that closed earlier today. The grain is for arrival by late June to early July.
Preliminary volume estimates were for 358,544 contracts, moving moderately higher than Monday’s final count of 285,426.
CBOT Soybean May futures prices rose to $9.04 on Tuesday, on optimism that export volume could soon recover, which prompted some technical buying.
To protect against a possible slowdown from the coronavirus, the Chinese government is encouraging its farmers to return to double-cropping practices to boost the quantity and preserve total grain production this year. The country is also beating taxes and fees for storing and transporting grain through the end of June.
Preliminary volume estimates were for 252,779 contracts, above Monday’s final count of 219,625.
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