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