CHICAGO, Oct. 25 (Xinhua) — Chicago Board of Trade (CBOT) agricultural futures saw a decline in all areas on Wednesday, with wheat leading the way.
The December delivery corn contract, which was the most active, dropped by 4 cents or 0.83 percent, settling at $4.80 per bushel. Meanwhile, December wheat plummeted by 12 cents or 2.07 percent, settling at $5.685 per bushel. Additionally, January soybean lost 6 cents or 0.46 percent, settling at $13.085 per bushel.
The decline in CBOT agricultural futures is attributed to the potential rainfall in parched Northern Brazil and a decrease in energy values. CBOT trading remains volatile, and the significance of South American weather in global grain pricing cannot be overlooked. Furthermore, U.S. corn and soybean exports for the current crop year are on par with last year’s figures.
The direction of CBOT prices in the longer term will heavily depend on the weather in South America during November and December. Studies conducted by Chicago-based research firm AgResource indicate that soyoil and soybeans are undervalued compared to the associated weather and demand risks.
The U.S. Department of Agriculture announced that China has secured 126,000 metric tons of U.S. soybeans for delivery in the 2023-2024 crop year.
According to the Energy Information Administration, ethanol production in the United States reached 306 million gallons last week, representing a 1 percent increase of 2 million gallons compared to the previous year. Ethanol stocks in the U.S. rose by 12 million gallons to a total of 899 million gallons, which is 4 percent lower than the previous year. Additionally, gasoline consumption in the U.S. remained steady at 8.86 million barrels per day compared to the previous year. Currently, U.S. ethanol production margins are at their highest levels in nine years, amounting to $0.67 per bushel.
In the next 10 days, limited rainfall is expected in North Central Brazil, which will benefit seed germination. However, Southern Brazil is experiencing heavy precipitation. Moreover, high temperatures will persist in North Central Brazil. The weather patterns in South America are abnormal.
