U.S. agricultural futures rise

By Xu Jing
  • World
  • Friday, 06 Nov 2020

CHICAGO, Nov. 5 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Thursday, led by soybean.

The most active corn contract for December delivery rose 4 cents, or 0.99 percent, to settle at 4.0925 dollars per bushel. December wheat gained 3.25 cents, or 0.54 percent, to settle at 6.0925 dollars per bushel. January soybean soared 17.5 cents, or 1.61 percent, to close at 11.0375 dollars per bushel.

Agricultural futures rallied as sustained weakness in the U.S. dollar has pushed new speculative money into raw material markets, while rising U.S. export demand and adverse global weather patterns lend fundamental support, Chicago-based research company AgResource noted.

Data from U.S. Department of Agriculture (USDA) showed that U.S. export sales in the week ending Oct. 29 were 103 million bushels of corn, 56 million bushels of soybeans and 22 million bushels of wheat.

For crop years to date, U.S. corn export commitments sit at 1,307 million bushels, up 179 percent from last year and a near-record large 56 percent of the USDA's forecast; soybean export commitments are a record large 1,782 million bushels, up 132 percent from last year and 81 percent of the USDA's forecast; and wheat commitments total 616 million bushels, up 12 percent.

Weather forecast shows it is wetter in parts of Central Argentina. Normal rainfall will develop in Central Brazil beginning next week but areas of the far North and South will be left dry. Much of Argentina's crop belt will see well below normal rainfall into the second half of November. Decent rain will favor the far Western Argentine crop belt on Nov. 13-15 but dryness returns thereafter.

Markets continue to digest the decline in U.S. end stocks. AgResource predicted that in longer term, greater than expected U.S. yield cuts or continued drought in Argentina may trigger the need to ration soybean supplies. The USDA will release its 10-year baseline projections on Friday afternoon.

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