Wheat, Corn And Soy Slip After Rally But All Head For Weekly Gains

9/5/2024 10:25:00 PM

(MENAFN- Live Mint) CANBERRA, Sept 6 (Reuters) - Chicago wheat, corn and soybean futures eased on Friday as traders decided that a fortnight-long rally which lifted prices from near four-year lows has left the contracts over-valued amid plentiful supply.

All three crops were nevertheless on track for weekly gains.

FUNDAMENTALS

* The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.4% at $5.72-1/2 a bushel by 0035 GMT but up 4.2% for the week, its second straight weekly increase.

* CBOT corn slipped 0.1% to $4.10-1/4 a bushel but was up 2.2% from last Friday's close, also its second weekly gain in a row, while soybeans fell 0.2% to $10.21-1/2 a bushel but were up 2.1% over the week for a third consecutive weekly rise.

* The rallies were driven by speculator unwinding some of their hefty short positions. Nudging the markets towards higher prices were a weak dollar that stimulated U.S. export demand and poor wheat production in Western Europe.

* That tide turned on Thursday, however, with commodity funds deciding that the contracts had become over-valued and turning net sellers of CBOT corn, wheat and soybeans, according to traders.

* Cheap wheat continues to flow from the Black Sea region, pressuring prices, and the U.S. will shortly begin harvesting what are - despite a dry end to the growing season - predicted to be huge corn and soy crops, creating a flood of new supply.

* Many traders are waiting for the U.S. Department of Agriculture to release its September crop estimates next week before making big moves.

MENAFN05092024007365015876ID1108643008

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.