By Jamie Martin
Recently The trading day for U.S. grains was marked by significant volatility, particularly for soybeans on the Chicago Board of Trade (CBOT).
Soybean prices reached a two-month high before closing lower, influenced by concerns about export demand and the effects of late-season drought on U.S. crop yields. The most-active soybean contract fell by 12-1/4 cents, ending at $10.41 per bushel after touching $10.64-3/4 during trading.
Wheat futures also faced downward trends, closing down 5 cents at $5.84-1/4 per bushel due to disappointing weekly export sales.
Traders were seen adjusting their positions as they prepared for two critical reports from the U.S. Department of Agriculture (USDA), which further affected market sentiments. Corn futures dropped 2 cents to settle at $4.13-1/4 per bushel, despite a second reported flash sale of U.S. corn to Mexico.
Market participants are closely watching for the USDA’s annual small grains summary and quarterly grain stocks reports scheduled for release soon.
Although the prospect of Chinese stimulus measures initially lent support to soybean prices, overall bearish sentiment persisted in the market. "It’s not clear what that all means for the grains market in the short term," commented Angie Setzer, partner at Consus Ag Consulting.
Additionally, speculative positioning ahead of the month-end and quarter-end contributed to a lack of interest in the grain and oilseed markets. Drought has hindered the onset of soybean planting in Brazil, though anticipated rainfall next month may allow for timely planting.
In Russia, winter wheat sowing rates have dropped to their lowest levels in 11 years due to drought conditions in significant producing areas.
Photo Credit: gettyimages-giovanni1232
Categories: National