CHICAGO, Jan. 3 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures fell across the board on Tuesday, led by wheat and soybean.
The most active corn contract for March delivery fell 8 cents, or 1.18 percent, to settle at 6.705 U.S. dollars per bushel. March wheat plunged 16.5 cents, or 2.08 percent, to settle at 7.755 dollars per bushel. March soybean lost 31.75 cents, or 2.08 percent, to settle at 14.9225 dollars per bushel.
CBOT agricultural futures fell sharply on fund inspired selling and profit taking, as the worry of U.S. stagflation looms in 2023.
It is a bearish start to 2023 with corn and soybean charts starting to break down. Chicago-based research company AgResource has maintained a strategy of selling strong rallies to advance old/new crop corn and soybean sales. The only bullish fundamental is the ongoing Argentine drought and potential crop loss. AgResource maintain a bearish longer term outlook as El Nino looks to boost U.S. crop yields in 2023.
U.S. Department of Agriculture export inspections for the week ending Dec. 29 were 26.2 million bushels of corn, 53.7 million bushels of soybeans and just 4 million bushels of wheat. For respective crop years to date, the United States has exported 377 million bushels of corn, down 27 percent year on year; 1,051 million bushels of soybeans, down 7.5 percent; and 435 million bushels of wheat, down 3 percent.
Brazilian President Luiz Inacio Lula da Silva has offered a surprising decree that extends for 60 days an exemption for fossil fuels from federal taxes. And the value of the Brazilian real fell 1.5 percent against U.S. dollar Tuesday, boosting Brazilian farmers.
Threateningly warm and dry weather will impact a majority of Argentina and far Southern Brazil over the next 10 days. The Brazilian weather forecast stays favorable with an abundance of rain and cooler than normal temperatures into Jan. 15th.
