U.S. Agricultural Futures Close Mixed

By Andi Anderson

The closing of Chicago Board of Trade (CBOT) agricultural futures on Monday showed a mixed performance, with corn and soybean prices declining while wheat prices rose. Here are some key details from the market report:

• The most active corn contract for December delivery decreased by 3.75 cents (0.76 percent) to settle at $4.8825 per bushel.
• December wheat, on the other hand, saw an increase of 4.5 cents (0.79 percent) to settle at $5.7275 per bushel.
• November soybean prices dropped by 1.75 cents (0.14 percent) to settle at $12.6425 per bushel.

The report highlights several factors affecting the agricultural futures market:

• Pressure on Bio Crops: Corn and soyoil faced significant selling pressure.
• Soybean Harvest: The ongoing Midwest harvest has led soybean prices to test last week's low. The soybean futures market has also seen reduced trading volume.
• Geopolitical Uncertainty: Traders are taking risk-off positions due to geopolitical war events, contributing to tepid trading volume on the CBOT.
• Energy Prices: Despite surging energy prices, they have not provided support for CBOT corn and soybean futures.
• Weather Concerns: Abnormal weather conditions in South America, particularly in Argentina and North Brazil, are impacting crop growth. The Great Plains in the U.S. remains dry, which is a concern for hard red winter wheat germination.
• USDA Crop Report: Traders are awaiting the release of the U.S. Department of Agriculture (USDA) October Crop report on Thursday, which may provide further insights into crop conditions and production estimates.
• Soybean Harvest Progress: The U.S. soybean harvest has progressed beyond 50 percent, and historically, the second week of October marks the seasonal low for soybean futures.
• Kazakhstan Wheat Crop: Kazakhstan's wheat crop is estimated at 12.3 million metric tons, down 25 percent from the previous year due to adverse weather conditions during growth.
• Weather Forecast: Rain is expected to fall across the northern half of Nebraska and into Northern Illinois and Michigan, while the southern U.S. remains dry with warming temperatures. Dry conditions in the Great Plains are concerning hard red winter wheat seed germination.

These various factors, including weather conditions, geopolitical events, and the upcoming USDA report, are influencing the performance of agricultural futures in the market. Traders and producers continue to monitor these developments to make informed decisions.

Photo Credit: istock-primeimages