agrimoney.com 20:12 GMT, Thursday, 22nd Sept 2016, by William Clarke
Corn futures fell back in Chicago, as pressure from the US harvest, and receding weather worries, sapped strength from the market.
Markets have had some support from the rain which is delaying the US harvest.
But weather models suggest that rains will abate after the current weather system moving through the US Midwest passes next week.
Harvest pressure
“Drier weather in the north western Midwest would finally allow corn and soybean drydown and early harvesting to improve,” said Don Keeney, at MDA Weather Services.
“Harvesting should also continue to progress well in the south eastern Midwest and Delta.”
“The harvest pressure is picking up in corn and that has moved the market off the early high,” said Darrell Holaday, at Country Futures.
True, US corn export sales were reported at 921,900 tonnes, at the top end of analyst forecasts, but markets did not develop any support on the news.
December corn futures finished down 1.1%, at $3.38 ѕ a bushel, punching through the 50-day moving average where it found support in the previous session.
Chinese back from holiday
CHS said “pressure from harvest and good export demand seem to be temporarily offsetting” in soybeans.
The USDA reported weekly soybean export sales at 875,700 tonnes, undershooting expectations which ran between 900,000 and 1.20m tonnes.
But commentators were still bullish on demand prospects.
“Beans sales were below estimates but China was on holiday for several days during reporting period,” said Kim Rugel.
And the USDA announced another 360,000 tonnes of soybean sales, believed to be all destined for China, although 120,000 tonnes was option
November soybeans finished up 0.1%, at $9.76 Ѕ a bushel.
Russian export tariff lifted
US wheat export sales topped expectations, at 561,000 tonnes.
And European wheat prices got a boost, as sellers showed interest in an Egyptian wheat tender, after three failed tenders in a row.
But there was downward pressure, with the news that Russia is will remove its wheat export tax from September 23.
And The EU cleared 452,000 tonnes soft wheat export licences in the last week, compared to 371,000 tonnes a year previously, bringing the total so far this season to 1.2m tonnes.
And Morocco bought 310,000 tonnes of EU soft wheat in a tender.
December Paris wheat futures, rose 0.3%, to finish at E162.00 a tonne.
Protein premium
December Chicago wheat futures finished down 0.7%, at $4.05 Ѕ a bushel.
But spring wheat futures, the highest protein variety, rallied.
“Increased milling wheat needs in North Africa, China and India will make this marketing year worth paying attention to right through May,” said Tregg Cronin, at Halo Commodities.
In Minneapolis, spring wheat futures rose 1.3%, to finish at $5.00 ѕ a bushel.
Sugar futures surge, and fall back
Sugar futures surged to their highest level in more than four years, up some 5%, before falling sharply back late in the session.
Coffee futures also turned lower, as the Brazilian real fell back against the dollar.
Brazil is the world’s top producer of coffee and sugar, and a weaker real encourages producer selling.
March raw sugar surged as high as 23.88 cents a pound, the highest for the second month contract since July 2012.
But a spate of late session selling saw the contract settle down 0.4%, at 22.67 cents a pound.
Outside day in arabica
A similar pattern was seen in arabica coffee, which rallied to a 19-month high of 1.641 cents a pound, before turning back to finish down 0.8%, at 155.25 cents a pound.
This marks an outside day, with futures trading above the previous session high, and finishing below the session low, seen as a bearish signal.
November robusta in London settled up 0.8 percent, at $2,002 per tonne, after hitting $2,028, the highest level for the benchmark second position since February 2015
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