AIRLINK 75.25 Decreased By ▼ -0.18 (-0.24%)
BOP 5.11 Increased By ▲ 0.04 (0.79%)
CNERGY 4.60 Decreased By ▼ -0.15 (-3.16%)
DFML 32.53 Increased By ▲ 2.43 (8.07%)
DGKC 90.35 Decreased By ▼ -0.13 (-0.14%)
FCCL 22.98 Increased By ▲ 0.08 (0.35%)
FFBL 33.57 Increased By ▲ 0.62 (1.88%)
FFL 10.04 Decreased By ▼ -0.01 (-0.1%)
GGL 11.05 Decreased By ▼ -0.29 (-2.56%)
HBL 114.90 Increased By ▲ 1.41 (1.24%)
HUBC 137.34 Increased By ▲ 0.83 (0.61%)
HUMNL 9.53 Decreased By ▼ -0.37 (-3.74%)
KEL 4.66 No Change ▼ 0.00 (0%)
KOSM 4.70 Increased By ▲ 0.01 (0.21%)
MLCF 40.54 Decreased By ▼ -0.56 (-1.36%)
OGDC 139.75 Increased By ▲ 4.95 (3.67%)
PAEL 27.65 Increased By ▲ 0.04 (0.14%)
PIAA 24.40 Decreased By ▼ -1.07 (-4.2%)
PIBTL 6.92 No Change ▼ 0.00 (0%)
PPL 125.30 Increased By ▲ 0.85 (0.68%)
PRL 27.55 Increased By ▲ 0.15 (0.55%)
PTC 14.15 Decreased By ▼ -0.35 (-2.41%)
SEARL 61.85 Increased By ▲ 1.65 (2.74%)
SNGP 72.98 Increased By ▲ 2.43 (3.44%)
SSGC 10.59 Increased By ▲ 0.03 (0.28%)
TELE 8.78 Decreased By ▼ -0.11 (-1.24%)
TPLP 11.73 Decreased By ▼ -0.05 (-0.42%)
TRG 66.60 Decreased By ▼ -1.06 (-1.57%)
UNITY 25.15 Decreased By ▼ -0.02 (-0.08%)
WTL 1.44 Decreased By ▼ -0.04 (-2.7%)
BR100 7,806 Increased By 81.8 (1.06%)
BR30 25,828 Increased By 227.1 (0.89%)
KSE100 74,531 Increased By 732.1 (0.99%)
KSE30 23,954 Increased By 330.7 (1.4%)
Markets

Soybeans climb on US weather worries; wheat firm, corn eases

The US Department of Agriculture in a monthly report last week cut its forecasts of US 2019/20 soybean production a
Published October 14, 2019
  • The US Department of Agriculture in a monthly report last week cut its forecasts of US 2019/20 soybean production and ending stocks more than most analysts expected.
  • The USDA was closed on Monday in observance of the Columbus Day holiday, and its weekly export inspections and crop progress reports were delayed until Tuesday.

CHICAGO: US soybean futures neared a four-month high on Monday, supported by fears that wintry weather over the weekend threatened Midwest production at a time of tightening US soy supplies, analysts said.

Wheat futures firmed on short-covering and worries about frosty temperatures in the US Plains wheat belt, while corn drifted lower, turning down after rising to a two-month high.

As of 12:58 p.m. CDT (1758 GMT), Chicago Board of Trade November soybeans were up 4-1/2 cents at $9.40-1/2 per bushel after reaching $9.45-1/2, the contract's highest level since June 18.

CBOT December wheat was up 2-1/2 cents at $5.10-1/2 a bushel while December corn was down 1/4 cent at $3.97-1/2 a bushel, retreating after climbing to $4.02-1/2, its highest price since Aug. 12.

Soybeans firmed after a hard freeze over the weekend stretched farther into the Midwest than expected, halting the growing season for crops in some areas.

"Recent weekend weather would suggest we've lost more beans," said Tom Fritz, analyst with EFG Group in Chicago, adding, "the soybean market has the most to lose, as far as crop size."

The US Department of Agriculture in a monthly report last week cut its forecasts of US 2019/20 soybean production and ending stocks more than most analysts expected. The government projected that stocks would fall to 460 million bushels by end-August 2020, from 913 million bushels a year earlier.

At the same time, the USDA raised its US corn yield estimate, bucking trade expectations for a reduction.

The USDA was closed on Monday in observance of the Columbus Day holiday, and its weekly export inspections and crop progress reports were delayed until Tuesday.

Meanwhile, traders took a cautious view on last week's progress in trade talks between the United States and China.

CBOT grains initially extended Friday's rally after a "phase one" trade agreement outlined by US President Donald Trump, along with the suspension of another tariff hike, held out the prospect of increased Chinese imports of US agricultural goods.

However, analysts noted the absence of a written agreement, along with previous setbacks in negotiations to settle the 15-month trade dispute between the world's biggest economies.

"A lot of people are going to wait for more details on this partial trade pact that is not expected to get signed until next month anyway," said Terry Reilly, senior analyst with Futures International in Chicago.

He noted that China's struggles with African swine fever in its massive hog herd was curbing the country's demand for soy, a key livestock feed source.

"It's really all up in the air, and it depends on China rebounding from a disaster with the pig crop," Reilly said.

 

Comments

Comments are closed.