Glacier FarmMedia — Grain and oilseed futures on the Chicago Board of Trade had been descending before they regained their footing ahead of the Thanksgiving Day weekend.
March corn was losing as much as seven U.S. cents per bushel before rallying to gain 3.75 cents for the week ended Nov. 26 at US$4.4525/bu. January soybeans dropped 23 cents, but ended the week with a weekly loss of 5.25 cents at US$11.3150.
March Chicago soft wheat had been down 18.75 cents before finishing the week only nine cents lower at US$5.4050. Its Kansas City hard red wheat counterpart dropped 12.25 cents but later nearly erased its losses to close the week at US$5.30. March Minneapolis spring wheat was down 14.25 cents, but gained seven cents afterwards to close at US$5.7850.
Read Also
U.S. grains: Chicago grains firm as traders gauge China purchases
Chicago | Reuters – Chicago soybean futures ticked up on Wednesday as traders eyed Chinese purchases of U.S. beans under…
Jack Scoville from The Price Futures Group in Chicago explained wheat suffered from global price declines earlier in the week and corn was following suit. He also said prices incurred a sudden uptick later on in the week as first notice day for December contracts is Nov. 28. However, he doesn’t believe the rallies will last.
“I think, overall, the funds are down seasonally and for whatever reason, I feel like we’re only getting a couple of days uptick. We’ll see what happens on Dec. 1,” Scoville said.
He added corn demand had been strong earlier, but talk of falling demand more recently put pressure on prices. Wheat and soybean demand was average, but reports that China will purchase more cargoes of U.S. soybeans lifted prices.
But there are underlying factors pressuring soybean prices.
“Brazilian (soybean) prices have not moved. Brazil is selling at cheaper levels than the U.S.,” Scoville said.
There is usually a lack of interest in grain markets going into December, he added, which would result in sideways to lower trade.
“Unless there’s some news around to really push prices higher … it looks like sideways trade is going to play out next month,” Scoville said.
