MarketsFarm — Commodity prices on the Chicago Board of Trade (CBOT) have found support from recent increases in global export demand.
China has purchased nearly 900,000 tonnes of soybeans for delivery during the current marketing year, which began on Sept. 1.
“It’s all about Chinese demand,” said Terry Reilly of Futures International in Chicago.
“They keep buying from the U.S., and that’s seen as supportive.”
Wheat futures have also received support from foreign export demand. In recent days Ethiopia purchased 100,000 tonnes of wheat, and Turkey purchased 500,000.
“Global export developments are backing back up from short term weakness, and that’s underpinned prices.”
Corn futures have stayed muted, as crop conditions didn’t decline as much as market participants expected. However, corn crop yields remain a question mark until the next world agriculture supply and demand estimates (WASDE) report from the U.S. Department of Agriculture (USDA), to be published Friday.
“That will be one of the most anticipated reports from the USDA this year,” said Reilly.
Earlier in the summer, Iowa was hit with a powerful windstorm, and extent of damage has not yet been confirmed.
“We’re not sure how much yields have declined after the derecho in Iowa,” he said, noting crop conditions are also expected to decline in other states.
— Marlo Glass reports for MarketsFarm from Winnipeg.