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Soybean corn and wheat prices have risen again

Soybean corn and wheat prices have risen again
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GFMM desk: Chicago’s soybean futures increased its third session on Wednesday (February 5, 2020). As the market continued to recover from its two-month low and earlier this week, corn and wheat were up, with some gains on the global stock market.

World stocks rose in anticipation of further central bank stimulus. And reported that scientists have developed an effective drug against the rapidly spreading coronavirus.

“We have a bit of support from gains in stock markets but there is not much potential for soybean prices to go higher, certainly not for the moment, as the virus is curbing demand,” said National Australia Bank economist Phin Ziebell.

The most-active soybean contract on the Chicago Board of Trade rose 0.6% to $8.84-1/2 a bushel by 1145 GMT, having firmed 0.3% on Tuesday.

White House economic adviser Larry Kudlow said the coronavirus would delay a surge in U.S. exports to China expected from the Phase 1 trade deal.

The agreement, signed on Jan. 15 and taking effect on Feb. 15, suspended a new round of U.S. tariffs in exchange for Chinese purchases of agricultural, energy and manufactured goods and services.

“So far, the U.S. appears to be taking China’s reluctance to buy in its stride,” Commerzbank said in note.

Traders said that although the outlook for the crop is favorable, there is concern that heavy rainfall in the next few days could slow Brazilian soybean yields.

Brazilian farmers will produce an estimated 124 million tons of soybeans in the 2019/2020 cycle, up 1.9% from January’s forecast, INTL FCStone said on Tuesday, citing strong yields and area increases.

If the projection is confirmed, Brazil’s output will grow by almost 8% from last season, the forecaster said, citing a government estimate of 115 million tons produced in the previous cycle.

The most active CBOT corn contract was up 0.1% at $3.82-3/4 a bushel with the rains in Brazil also having the potential to delay corn plantings.

Ukraine officials and traders are not expecting the coronavirus epidemic to affect the country’s grain exports to China, though supply and transport across the country is disrupted. China is a major importer of Ukrainian corn. Find more…

Source: Online/SZK

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