By Julie Ingwersen
CHICAGO, Aug 19 (Reuters) – U.S. corn and soybean futures fell about 2.5% on Thursday, following broad declines in commodities together with crude oil and metals tied to fears about slowing world development, analysts stated.
Strain additionally stemmed from forecasts for rains in northwestern parts of the Midwest that would enhance manufacturing prospects, significantly for soybeans.
Wheat adopted the weak pattern in corn and soy, retreating after sharp beneficial properties final week that had been linked to issues over Northern Hemisphere harvest prospects.
A firmer greenback .DXY added to bearish sentiment, making U.S. grains much less aggressive globally. The dollar hit a nine-month excessive in opposition to a basket of different main currencies. USD/
Chicago Board of Commerce December corn CZ1 settled down 14-1/four cents at $5.50-3/four per bushel. November soybeans SX1 ended down 33-1/four cents at $13.20 a bushel, and December wheat WZ1 fell 8-1/2 cents to settle at $7.42-3/four a bushel.
“You’ll be able to take a look at the skin markets as a set off. You may have the greenback right into a contract excessive, and the crude oil down by $2. … You’ve got folks getting away from lengthy positions right here, margin points, and it (market weak point) feeds on itself,” stated Terry Linn, analyst with Linn & Associates in Chicago.
Welcome showers had been anticipated over the following few days within the Dakotas and Minnesota, areas which have struggled all summer season with drought. The area’s corn crop is previous its key development section, however soybeans are nonetheless growing and may benefit from moisture.
“These rains might be useful,” Linn stated, “however you are not swiftly going to come back as much as a trend-line yield due to these.”
Merchants proceed to digest findings from this week’s Professional Farmer Midwest Crop Tour.
The tour late on Wednesday projected corn yields and soybean pod counts in Illinois above a three-year common. The tour is predicted to launch estimates for all of Iowa and Minnesota in a while Thursday.
Enhancing export demand for U.S. soybeans underpinned futures. U.S. soybean export gross sales topped 2 million tonnes within the week ended Aug. 12, and the U.S. Division of Agriculture via its day by day reporting system confirmed personal gross sales of 263,000 tonnes of U.S. soybeans to China and 148,590 tonnes to Mexico, the newest in a string of offers.
(Reporting by Julie Ingwersen in Chicago; Extra reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Modifying by David Holmes and Peter Cooney)
(([email protected]; 1-313-484-5283; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.