A mild fall proved too short as snow and a hard freeze crushed late-planted crops in the Northern Plains and Upper Midwest Friday,
fueling a strong rally in CME corn futures along with soybean and wheat
prices.To get more
soybean futures, you can visit shine news official website.
Traders estimated the early taste of winter will cut the nation’s soybean harvest by 30 to 40 million bushels and trim the expected corn
crop by 100 million bushels to 200 million bushels, said Don Roose of
U.S. Commodities in West Des Moines, Iowa.
Some areas had escaped a freeze by about two weeks past the average date, Roose said, but some latel-planted crops were a month behind.“It
was still not enough to have all of the crops escape some damage,” Roose
said.
December soymeal futures are $3.00 per short ton higher at $310.80. December soy oil futures are 0.19¢ higher at 29.97¢ per pound.In the
outside markets, the NYMEX crude oil market is $1.18 per barrel higher,
the U.S. dollar is lower, and the Dow Jones Industrials are 488 points
higher on optimism over U.S.-China trade talks.
Harsh weather wasn’t the only factor driving prices higher Friday.Roose said prices also rose due to optimism over U.S.-China trade
talks and the possibility that Great Britain won’t crash out of the
European Union through a hard Brexit.
With talks between the Trump administration and China winding up Friday, “the trade is optimistic there will be a mini-deal,” Roose
said.Progress in Brexit talks also “gives more of a positive spin to
some kind of organized breakaway and more normalized trade with the E.U.
and the rest of the world,” he said.
Friday saw “lots of fund buying,” said Jack Scoville of PRICE Futures Group in Chicago. “We are up on the news that the U.S. and China have a
partial trade deal that will hold tariffs and allow ag sales to China.
Details will be out this afternoon, I guess. Plus, it is colder farther
east in the forecasts and some crops will get hit, so maybe we’ll see
some additional yield loss.”
Matt Tranel of Commodity Risk Management Group in Platteville, Wisconsin, agreed the trade and weather fueled the rally.
“Snow fell in the Dakotas, which has farmers running around trying to get at their soybeans with many fields at risk to a freeze,” Tranel
said. “Rain is falling in other areas, which has prevented or delayed
access to damp fields. Soybeans saw a boost when China purchased ahead
of trade talks. President Trump made comments that trade talks were
proceeding in a positive direction. The WASDE report friendly to
soybeans dropped yield by a bushel an acre to 46.9. Ending stocks were
lower than many thought and while we still have a pile of soybeans, it
isn’t the buffer that we had previously, so volatility and excitement is
up on any news.”
“The corn report was bearish but ultimately a bargain buy at around $3.80 per bushel, which is support,” he added. “We have found that cash
markets are have been stronger as of lately with basis strengthening, so
that has supported the move higher.”
