Chicago corn prices experienced a decline on Thursday, marking the first drop in four consecutive sessions. Similarly, soybeans also faced a decrease as a result of limited demand for both commodities, putting downward pressure on their prices. On the other hand, wheat saw a slight increase, recovering some of the significant losses from the previous session.
Key Factors:
● The active corn contract on the Chicago Board of Trade (CBOT) declined by 0.2% to reach $5.86 per bushel, while soybeans experienced a 0.1% loss, settling at $13.23-3/4 per bushel.
● Wheat, however, recorded a 0.1% increase, reaching $6.06-3/4 per bushel, after a 2.6% decline on Wednesday.
● The lack of demand for corn and soybeans from China, a major importer, is negatively impacting prices. China's ample supply of inexpensive wheat is replacing a significant portion of corn in its large animal feed market, leading to reduced consumption of both corn and soymeal and potentially lowering the demand.
● Ukraine accused Russia of effectively excluding the Ukrainian port of Pivdennyi from a deal that permits safe Black Sea grain exports of food and fertilizer through Ukrainian ports. Russia has complained about its inability to export ammonia via a pipeline to Pivdennyi. Russian wheat export prices have declined again due to favorable global supply conditions, an extension of the Black Sea grain deal, and local expectations of a reduction in export duty, according to analysts.
● As per the Buenos Aires grains exchange, recent heavy rainfall in Argentina's crucial agricultural farmland has improved expectations for the upcoming 2023/2024 wheat crop. This comes as a relief after a historic drought severely impacted yields in the previous season. Sowing for the wheat crop is expected to commence soon, and the estimated total harvest is 18 million tonnes, up from the previous season's 12.4 million tonnes.
● Commodity funds were reported to be net sellers of CBOT wheat, soybean, and soymeal futures contracts on Wednesday. However, they were net buyers of CBOT corn and soy oil contracts.
MARKET NEWS
Global stock markets experienced a decline on Wednesday as talks on the U.S. debt ceiling remained unresolved, leading to a general sense of unease in the markets. Safe-haven assets like the dollar remained steady at recent highs.
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