Weather and Field Areas Continue to Undermine Chicago Prices
Futures for the major grains ended the week on a negative note, with maize even falling for the third consecutive session down on Friday. Brokers were reacting to the gloomy US export data and the forecast for milder weather for the weekend. Only soybeans responded well to the news that negotiations were resuming between China and the United States to end the trade war.
Following disappointing overseas sales, the markets were also watching China’s purchases from other countries, including Russia. The US Department of Agriculture reported 121,200 tonnes of US corn sold for export in the week before July 18, down 59% from the previous four-week average. .
Vendors’ concerns over corn crop yields have eased somewhat, with updated weather models indicating more favorable short-term weather forecasts in several key growing areas in the United States, and throughout the critical period of pollination.
Nevertheless, threats to production remain, as forecasts indicate that very hot, dry weather may return to the U.S. Midwest in the next two weeks, particularly in parts of the producing states of Illinois, Iowa and Indiana.
Wheat futures were hit by the news of the western European wheat crop. The latter had progressed rapidly this week, although the rains had the work. France is expected to harvest between 38 and 39 million tonnes of common wheat this summer, with quality levels in line with export standards, cereal exporter Soufflet said on Friday. Prices, however, continued to be supported by the prospects of a lower quality harvest in Russia, the leading exporter. SovEcon lowered its forecast for Russian wheat exports in the new 2019/20 marketing year by 6.2 million tonnes to 31.4 million tonnes.
A bushel of corn for December ended Friday at US $ 4.2450. A bushel of wheat for September delivery ended at $ 4.9600 US. The bushel of soybeans for November was US $ 9.0100 compared to US $ 8.9975 at the previous closing for a slight increase of 0.1%.