CBOT weekly outlook: Soybeans watch U.S. export sales

CNS Canada — Corn futures at the Chicago Board of Trade recorded losses during the week ended Wednesday, while soybean futures added gains for the September contract but recorded losses for the November contract.

“Everything’s coming off this week, (prices are) coming down… there’s no real major issues going on,” said Terry Reilly, senior commodity analyst with Futures International in Chicago. “I think it’s general harvest pressure.”

Soybean futures for the September contract closed at $10.3075 per bushel on the week ending Wednesday, a 25-cent increase from the previous week (all figures US$).

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Flooding in Louisiana and surrounding areas gave soybeans a little bit of a boost, Reilly said; however, improving weather in the U.S. will continue to add pressure.

Corn futures fell on the week, dropping more than two U.S. cents to US$3.275 per bushel for the September contract.

Favourable weather throughout the Midwest weighed on corn throughout the week, as well as expectations for a large corn crop as the Pro Farmer crop tour makes its way through some of the best corn-growing regions of the U.S.

“(Thursday) evening we’re going to get the yields from the Pro Farmer crop tour, which may have a small impact on the market,” Reilly said. “We’ll just watch crop conditions when they come out next Monday.”

Traders are also keeping an eye on export sales on Thursday for a fresh indication if China is still buying high quantities of U.S. soybeans, he said.

The option expiration for soybeans’ September contract is also this Friday, he said.

“You may have some traders position themselves or get out of the option market, which may gyrate futures a little bit.”

— Erin DeBooy writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.

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