Corn futures retreat on profit taking, still end up 12% for the week


CHICAGO: Chicago Board of Trade corn futures retreated on profit taking on Friday, while soybean futures extended their gains, fueled by lower than expected U.S. acreage estimates and by dry weather in part of the Midwest, traders said.

Corn fell after rising from the daily trade limit on Wednesday when the US Department of Agriculture shocked traders by believing farmers had planted fewer acres than expected.

Uncertainty over demand has increased pressure on prices as a federal appeals court overturned a US rule put in place under former President Donald Trump to increase sales of corn-based ethanol.

It was another disappointment for the biofuels industry after the United States Supreme Court last Friday made it easier for small oil refineries to obtain exemptions from a law requiring increasing levels of ethanol to mix in their products.

“This is definitely a second success,” said Rich Nelson, chief strategist for Allendale commodities brokerage.

Concerns about the potential for lower than expected corn imports from China also crept into the market, brokers said.

The most active corn contract ended down 9-1 / 4 cents to $ 5.79-3 / 4 a bushel, but was up nearly 12% for the week. Soybeans were up 3-1 / 2 cents to $ 13.99, up 10% for the week and matching Wednesday’s closing price. Wheat fell 12-3 / 4 cents to $ 6.52-3 / 4 and finished up 2% for the week.

Traders adjusted their positions ahead of the weekend as CBOT markets will be closed Monday for Independence Day in the United States.

Next week, analysts said they would closely monitor crop weather in the United States as drought threatens soybean and spring wheat crops in places like North Dakota and South Dakota. A noon Friday forecast added beneficial rains for parts of Iowa, the main corn producing state, Nelson said.

The risk of frost damage to Brazil’s already drought-stricken second maize crop has fueled concerns about the maize supply this week.


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