Agricultural Commodities prices were also mixed on Monday, as Soybeans recover Friday’s losses.
In weather space, Midday weather forecasts were similar to this morning’s discussions. South American conditions are largely favorable, but we have developing dryness in Brazil and Paraguay that will need to be watched closely during the next 10 days.
CBOT Wheat March futures declined on Monday on a round of technical selling and finished at 5.555 USD per bushel. Prices were slightly lower on today’s session and are currently at 5.55 USD per bushel at 08:25 GMT.
Moreover, Short-term technical conditions will continue to inspire selling interest to build above the market from multiple sectors of the trade. Producers find current values better than many they have seen and some producer selling activity can be noted.
CBOT Corn March futures fell on Monday dragged by below-than-expected weekly export data to close at 3.8825 USD per bushel. Corn futures prices traded lower in today’s session at 3.865 USD at 08:25 GMT.
In U.S.-China news, Chinese media is reporting that China’s Vice Premier Liu will be in Washington this week to sign the Phase One trade agreement. After delaying the implementation of export taxes on palm oil-based on price thresholds being exceeded, Indonesia will begin assessing the export tax in January. This will benefit other global veg oil products. History has proven many times that veg oil demand is largely inelastic. As global supplies tighten, price pressures on consumers will continue.
CBOT Soybean January futures prices boosted on Monday as weekly export data showed as trader estimates. Soybean futures finished Monday’s session at 9.5225 USD per bushel.
In the Far East, China said they will approve the first GMO soybean variety for local production, plus 2 GMO corn varieties for domestic production. Longer-term, this could be the beginning of a transition that will lead to increased domestic production. It will take time, but this implies a new willingness to open doors to possibilities that were previously closed.
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