MARKET DEVELOPMENT
U.S. agricultural futures rise
U.S. agricultural futures rise
05.04.2022 (www.thestar.com.my) - CHICAGO, April 4 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Monday, led by wheat.
The most active corn contract for May delivery rose 15.5 cents, or 2.11 percent, to settle at 7.505 U.S. dollars per bushel. July wheat soared 25.75 cents, or 2.62 percent, to settle at 10.1 dollars per bushel. May soybean climbed 19.5 cents, or 1.23 percent, to settle at 16.0225 dollars per bushel.
CBOT agricultural futures were sharply higher as Russia-Ukraine conflict rages on. The trade volume has expanded. New money appears to be entering the commodity market. It is "risk on" in grains as Russia-Ukraine ceasefire talks appear to be stalled, Chicago-based research company AgResource noted.
China will return from holiday on Wednesday with fresh demand for U.S. soybean expected. AgResource stays bullish.
U.S. Department of Agriculture (USDA) announced that China bought 1,084,000 metric tons of U.S. corn. U.S. exporters suggest that another 2.5 million to 3.0 million metric tons will be added in the coming days and weeks. In total, it appears that China has purchased 3.5 million to 4.0 million metric tons of U.S. corn.
CONAB's April Crop Report will be out on Thursday.
A frost/freeze occurred across European agricultural areas on the weekend. It will take a week to assess any crop damage.
European rapeseed oil values reached record 1.02 dollars per pound Monday. Amid rising South American soyoil premiums, the break in soyoil futures late last week was corrective in a longer-term bull market.
There will be limited rainfall for the Canadian Prairies and the U.S. Plains over the next two weeks. The forecast warms dramatically in the 7-10 day period for the Southern and Central Plains. The lack of rain, strong winds and warming temperatures look to add further stress to hard red winter (HRW) wheat. The East Midwest holds in a wet/coolish upper air flow.