U.S. agricultural futures rise

By Xu Jing
  • World
  • Friday, 28 Aug 2020

CHICAGO, Aug. 27 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Thursday, led by wheat.

The most active corn contract for December delivery rose 4.25 cents, or 1.2 percent, to close at 3.585 U.S. dollars per bushel. December wheat soared 11 cents, or 2.04 percent, to settle at 5.5075 dollars per bushel. November soybean climbed 17.75 cents, or 1.92 percent, to close at 9.42 dollars per bushel.

Agricultural futures rallied in active volume on drier weather next week across the Central U.S. and on a stream of positive export news, Chicago-based consulting company AgResource noted.

U.S. exporters announced to have sold 747,000 metric tons of corn to China, with another 140,000 metric tons sold to unknown destinations. No new soybean sales were announced but soybeans still rallied on yield concern.

In the week ending Aug. 20, U.S. exporters sold a net 46 million bushels of new crop corn, of which 26 million bushels were to China; a net 69 million bushels of soybeans, including 22 million bushels to China; and 28 million bushels of wheat, with two cargoes of hard red winter (HRW) wheat confirmed to have been purchased by China.

China's purchase pace has been active, and has continued into this week, AgResource said.

For respective marketing years to date, the United States has sold 618 million bushels of new crop corn, with China having secured 251 million bushels of U.S. origin corn. Meanwhile, new crop soybean commitments are a record 1,052 million bushels, with China having secured 460 million bushels of U.S. new crop soybean. Cumulative wheat commitments total 436 million bushels, up 7 percent year on year.

Weather forecast shows it will be drier in the Southern Plains beyond Sept. 10. Modest rainfall will expand into southern and western Illinois, Indiana and Ohio from next Monday to Wednesday, but needed precipitation will bypass East Nebraska, Iowa and pockets of Central Illinois. Near-term rainfall will favor the Delta, Southeast and far Southern Midwest. Cooler temperatures will be established during the second half of next week, but premature frost is not indicated across the Northern Plains or Southern Canada into Sept. 12.

AgResource does not expect a structural change in the U.S. agricultural market unless there is dire drought in Brazil in December-February.

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