Agricultural Commodities erase earlier gains on a round of techincal buying

Agricultural Commodities prices surged Friday’s session, erasing losses from Thursday’s session on a round of technical buying. Wheat, Corn, and Soybean finished the session higher.

In weather news, according to the latest 8-to-14-day outlook from NOAA, there’s a great chance for more rain and snow over the next few days, especially in the Northern Plains, upper Midwest and Great Lakes region.

In the Energy Space, Oil prices rose after two large crude production bases in Libya began shutting down amid a military blockade, setting the stage for crude flows from the OPEC member to be cut to a trickle.

U.S. (WTI) futures were at 59.26 USD per barrel and currently trading at 58.95 USD at 08:00 GMT.

International Brent futures were at 64.89 USD per barrel and currently trading at 64.70 USD at 08:00 GMT.

 

Wheat

CBOT Wheat March futures rose on Friday’s session on a round of technical buying and closed at 5.7025 USD per bushel.

French wheat production was reported a record low overnight, declining 10 percent from 2019 total. Heavy rain delayed planting, ultimately pushing soft wheat acreage to a 19-year low to 11 million acres. France is the European Union’s largest grain producer.

Taiwan issued a tender to purchase 3.6 million bushels of U.S. wheat. Japan also issued a regular tender to purchase 4.3 million bushels of wheat from the U.S., Canada, and Australia.

 

Corn

CBOT Corn March futures erased Thursday losses on Friday’s session as bargain buyers entered the market after prices fell significantly over the past two sessions and settled at 3.89 USD per bushel.

India received several offers for its international tender to purchase 6.9 million bushels of non-GMO corn from optional origins. The tender closed January 14 but offers are still being considered by India’s state-run trading company MMTC. The grain is for shipment no later than February 10.

Preliminary volume estimates came at 462,267 contracts, higher than Thursday’s final count of 361,431 contracts.

 

Soybean

CBOT Soybean March futures prices surged on Friday on a round of technical buying prompted by spillover strength from corn to settle at 9.2950 USD.

China has promised around $32 billion in U.S. agricultural purchases between 2020 and 2021, but those targets depend on market conditions. With U.S. tariffs still in place, it might be hard for China to reach those goals. This is one of the factors that cooled soybean prices earlier this week.

Preliminary volume estimates were for 162,876 contracts, below Thursday’s final count of 175,347.

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