MarketsFarm — Technical buying was a supportive factor on the Chicago Board of Trade in late April, but commodity futures were broadly lower due to a lack of export activity.
However, China reportedly remains committed to fulfilling its end of its Phase One trade agreement with the United States.
Although soybean futures have been near contract lows for three consecutive trading sessions, Terry Reilly, a grains analyst with Futures International, expected the July soybean contract to get back up to $8.40 per bushel (all figures US$).
“But we need significant buying from China to propel that market higher,” he remarked.
U.S. President Donald Trump’s order for meat processing plants to resume operations was also a supportive factor, as demand for feed will likely not decrease as much as expected.
However, Reilly expected corn prices to remain under $3.20 for the foreseeable future due to prolonged weakness in demand for ethanol.
“Wheat markets have also been sagging due to a lack of fresh export developments,” Reilly said.
He expected the July contract for Chicago soft red wheat to test $5 levels “unless we see an improvement in exports.”
— Marlo Glass reports for MarketsFarm from Winnipeg.