CBOT crop futures rise weekly on strong export demand

Source: Xinhua| 2019-09-01 01:06:57|Editor: yan
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CHICAGO, Aug. 31 (Xinhua) -- Chicago Board of Trade (CBOT) corn futures ended this past trading week higher on strong export demand from overseas markets.

The most active corn contract for December delivery was up 2 cents, or 0.54 percent week on week, to close at 3.6975 dollars per bushel on Friday. November soybeans were up 12.5 cents, or 1.46 percent, to settle at 8.69 dollars per bushel. December wheat was down 15.25 cents, or 3.19 percent, to close at 4.625 dollars per bushel.

CBOT corn futures ended higher slightly after finding support at May's pre-planting delay lows. Analysts also noted that CBOT corn in recent years has found its fall or winter bottom in the last part of August as producers finish old crop sales.

New crop sales of corn jumped week to week while soybean sales plunged, according to the report released Thursday by U.S. Department of Agriculture (USDA).

Corn sales for overseas delivery in the 2019-2020 marketing year totaled 858,900 metric tons, the government said.

Mexico bought 547,200 metric tons, an unknown customer purchased 83,300 metric tons, Guatemala took 80,200 tons, Honduras bought 45,100 tons, and El Salvador was in for 37,800 tons, the agency said.

For the 2018-2019 marketing year, export sales resulted in a net-reduction of 2,500 metric tons due to cancellations and shifts of cargoes to the new crop year.

Soybean sales, meanwhile, dropped to 353,100 metric tons from 792,600 tons a week earlier, the USDA said.

An unknown buyer took 136,200 metric tons, Mexico was in for 123,000 tons, Egypt bought 50,000 tons, and Malaysia purchased 17,000 tons.

Old crop soybean sales totaled 95,200 metric tons as China bought 76,700 tons, Japan was in for 59,200 tons, South Korea took 56,800 tons. An unnamed customer canceled a shipment for 157,700 tons.

Sales of wheat for delivery in the grain's 2019-2020 year that started on June 1 were reported at 661,700 metric tons, a marketing-year high, the USDA said. The total was up 11 percent week to week and 37 percent from the prior four-week average.

South Korea was a big buyer at 105,100 metric tons, Mexico took 90,700 tons, an unknown buyer bought 74,800 tons, Japan was in for 69,200 tons, and Nigeria purchased 66,000 tons, the government said in its report.

Soybean futures marked a 3-month low and then closed higher for the week. The CBOT soybean trade ebbed and flowed, according to the latest comments on trade talks between the United States and China.

CBOT wheat futures ended weaker and fell to new contract lows. U.S. exports have benefited from traditional buyers extending coverage on cheap prices.

The USDA released Monday an updated crop progress report. As of Aug. 25, 57 percent of U.S. corn was rated in good to excellent conditions, up from 56 percent one week before. Good or excellent soybeans were reported at 55 percent, 2 percentage points higher than the previous week.

According to the report, 69 percent of U.S. spring wheat was rated good or excellent, down from 70 percent. And only 38 percent of U.S. spring wheat was harvested, well behind the 2014-18 average of 65 percent.