CHICAGO, Oct. 30 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Friday, with corn remaining unchanged, wheat falling and soybean rising.
The most active corn contract for December delivery closed unchanged from the previous trading day at 3.985 U.S. dollars per bushel. December wheat shed 5.25 cents, or 0.87 percent, to settle at 5.985 dollars per bushel. January soybean rose 5.75 cents, or 0.55 percent, to close at 10.5625 dollars per bushel.
Fund managers continue to cut risk and are using bounces to add to their sales. CBOT agricultural markets are not immune to the anxiety with risk-off being the theme since Tuesday, Chicago-based research company AgResource noted.
Private crop estimates will be out next week. It is expected that the U.S. Department of Agriculture (USDA) will lower its U.S. corn, soybean estimates slightly on Nov. 10.
USDA reported the sale of 121,500 metric tons of U.S. soybeans to an unknown destination in the 2020/21 crop year.
Media reported that a cargo of U.S. ethanol is finally sailing to China. Market may see growing ethanol trade into China by year end as it's a high value product to boost total China expenditures on U.S. agricultural products, AgResource noted.
Ukraine corn yield data continues to be disappointing with a crop size of 28.4 million metric tons, compared to USDA's forecast of 36.5 million metric tons.
It will be drier with virtually no rain for Argentina and Southern Brazil over the next 12 days. Lesser showers will allow Brazilian soybean planting to accelerate across major producing states Parana and Mato Grosso do Sul. A rapidly strengthening La Nina is a concern as dryness across Argentina and Southern Brazil will be the result. Temperatures across Southern Brazil and Argentina are initially cool, but will warm late next week. Drying soils across Argentina are the worry heading into mid-November.
The tight structure of the cash markets has not changed with strong basis levels holding in the domestic and FOB export markets in the United States, Ukraine, Russia and South America, AgResource noted. Although "risk off" has been the theme, fund selling this week has produced an opportunity to enter or extend market ownership as the Northern Hemisphere harvest winds down.
Did you find this article insightful?