Chicago Board of Trade (CBOT) agricultural futures experienced a decline in prices on Tuesday, led by wheat. The December delivery corn contract saw a decrease of 9.5 cents, or 1.91 percent, settling at $4.8675 per bushel. Similarly, the December wheat contract plunged 16.5 cents, or 2.67 percent, settling at $6.005 per bushel. Additionally, the November soybean contract shed 13.25 cents, or 0.94 percent, to settle at $13.925 per bushel.
In response to the ongoing hot and dry weather in the U.S. Midwest, CBOT agricultural futures experienced a corrective trade. Traders are uncertain about the impact of these weather conditions on crop yields. Wheat futures have reached new lows, contributing to the overall decline.
AgResource, a research company based in Chicago, advises against selling during this decline. They note that the market follows a recurring price pattern in recent weeks, with a rally at the beginning of the week, a mid-week break, and a recovery just before a long holiday weekend. Therefore, they anticipate a potential increase in prices.
The U.S. Department of Agriculture has announced the daily sale of 246,000 metric tons of soybeans and 105,000 metric tons of soymeal to unknown destinations. This sale indicates ongoing demand for soy-based products.
Stats Canada has estimated the 2023 crop yields for various agricultural products. The all wheat crop is projected to be 29.4 million metric tons, a decrease of 14 percent compared to the previous year. Similarly, the oat crop is estimated to be 2.4 million metric tons, down by 54 percent. The canola crop is projected to be 17.6 million metric tons, a decrease of 6 percent. Consequently, wheat exports from Canada for the 2023-2024 period are likely to be reduced to 20-21 million metric tons, down from 25.50 million metric tons in 2022.
An extended period of little to no rainfall, combined with above-normal temperatures, is forecasted to begin on Friday across the Plains, Midwest, and Delta areas in the United States. Central U.S. regions are also expected to experience record heat in the 6-15 day period. This extreme heat will cause additional stress on corn and soybean crops. Soil moisture in the central region is rapidly declining, and crops in the driest areas may face premature death.
Credit: The Star : News Feed
