Chicago agricultural commodities close higher

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soybean
soybean

Chicago Board of Trade (CBOT) grains futures settle higher on Monday with soybean futures firmed, supported by some concerns about rain in parts of Argentina curtailing crop production from the world’s third largest exporter of oilseed.

Wheat futures edged higher, with traders noting consolidation trade after prices firmed to their highest in nearly three months during the overnight trading session. Corn futures were slightly lower.

The most active corn contract for March delivery rose 2 cents, or 0.56 percent, to 3.6 dollars per bushel. March wheat delivery rose 4 cents, or 0.95 percent, to 4.2725 dollars per bushel. January soybeans added 10.5 cents, or 1.06 percent, to 10.0525 dollars per bushel.

Moves in all three commodities were muted as traders were reluctant to place aggressive bets ahead of key U.S. Agriculture Department reports on supply and demand on Thursday.

Rains in central and northeastern Argentina threatened to flood soybean fields, but the latest forecasts called for improvements in the coming weeks, traders said.

The market also received support from better-than-expected weekly export inspections data, which provided some relief after a disappointing report on global demand for U.S. supplies last week.

The USDA said on Monday morning that soybean export inspections totalled 1.457 million tonnes in the latest reporting week, exceeding the high end of trade forecasts that ranged from 1.1 million tonnes to 1.4 million tonnes.

In the outside markets, the Brent crude oil market is 1.82 dollars per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 64 points lower at 19,899 points.

Jason Roose, a researcher from U.S. Commodities, says the markets face rally challenges.

“Grain markets have been mixed and currently trading higher in a market that is positioning for Thursday’s January crop report. With no shortage of grain, favorable crop-weather in South America, rallies will be limited. Plus, producers will be willing sellers on rallies, with crop ratings on wheat giving support on breaks,” Roose says. Enditem

Source: Xinhua/NewsGhana.com.gh

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