Chicago Board of Trade (CBOT) corn and wheat futures fell back on Thursday on a stronger dollar following rate cuts by the European Central Bank, technical trading and slower-than-anticipated weekly export sales, according to analysts.
As the turnaround in canola continued, analyst said there are three factors underpinning the swing upward. David Derwin, commodities futures advisor for Ventum Financial in Winnipeg, pointed to the gains made by soyoil futures on the Chicago Board of Trade, the weakening of the Canadian dollar, and the reduction in the canola harvest made by Statistics Canada.
Chicago Board of Trade corn futures jumped to a five-and-a-half month high on Tuesday, after the U.S. Department of Agriculture slashed domestic corn supply forecast by more than the market had expected.
Chicago soybean futures dropped on Monday on expectations for a hefty South American crop, while corn futures rose as traders anticipated world supply and demand estimates from the U.S. Department of Agriculture will show smaller U.S. stockpiles.
U.S. soybean futures firmed on Thursday, led by strong gains in soyoil as a smaller-than-anticipated canola harvest outlook in Canada stoked worries about tightening global vegetable oil supplies.
Proposed tariffs imposed on Canadian and Mexican imports into the U.S. gave the Chicago Board of Trade a lot to think about during the week ended Dec. 4, 2024.
U.S. soybean futures fell on Wednesday on favorable crop weather in South America and concerns about the incoming Trump administration's hawkish approach to trade with top importer China.