Chicago Board of Trade (CBOT) agricultural futures had a mixed closing on Monday, with corn and soybean prices falling while wheat prices rose.
The December delivery corn contract, which was the most active, experienced a decline of 3.75 cents, or 0.76 percent, reaching a settlement price of 4.8825 U.S. dollars per bushel. On the other hand, the December wheat contract increased by 4.5 cents, or 0.79 percent, settling at 5.7275 dollars per bushel. The November soybean contract lost 1.75 cents, or 0.14 percent, to settle at 12.6425 dollars per bushel.
Selling pressure has impacted the bio crops of corn and soyoil, with soybeans currently testing the low point reached last week as the Midwest harvest continues. Traders are exercising caution and reducing risk due to geopolitical war events and anticipation of the U.S. Department of Agriculture (USDA) October Crop report set to be released on Thursday, resulting in tepid trading volume for CBOT.
Despite rising energy prices, CBOT corn and soybean futures have not found support during harvest time. Weather conditions in South America are unusual, with Argentina and North Brazil requiring rainfall. Chicago-based research company AgResource advises against making hasty moves in response to CBOT rallies or declines until after the release of the USDA Crop report, also cautioning the traders.
The U.S. soybean harvest has crossed the 50 percent mark, while historically, the second week of October marks the seasonal low for soybean futures.
Kazakhstan’s wheat crop is projected to be 12.3 million metric tons this year, a 25 percent decrease from the previous year due to adverse weather conditions during growth.
Rainfall is expected from Wednesday onwards, persisting throughout the weekend. The northern half of Nebraska, as well as Northern Illinois and Michigan, will receive showers. The rest of the southern U.S. will remain dry with rising temperatures over the weekend. The lack of rain in the Great Plains is a concern as it hampers the germination of hard red winter wheat seeds.
Credit: The Star : News Feed
