CBOT agricultural futures end lower on technical selling

Andrew Cummings
October 3, 2019

About 913m bushels of old crop soybeans were in storage as of September 1, the USDA said. CBOT wheat futures rose 0.3% to $4.98-3/4 a bushel on spillover support from the gains in corn.

The deals offered some support to a market anxious that the prolonged U.S./China trade war will continue to depress Chinese imports of U.S. soybeans.

"Unfortunately it looks like the Black Sea region and Europe will continue to dominate such tenders with USA wheat not seen with much of a chance", one trader said. The two sides agreed to continue to maintain communication on related issues. Traders are uncertain about the crops after historic flooding delayed plantings in the spring and as harvests are off to a slower than normal start.

"INTL FCStone's estimates on Tuesday underlined a generally positive picture of the US corn crop", Ammermann said. However, some crops, including soybeans, face high remaining stocks from last year's harvest.


Corn condition rated 2 percent very poor, 6 poor, 26 fair, 47 good, and 19 excellent. Ample supplies and lackluster USA export demand also weighed on prices.

Soybean futures faced pressure as investors turned to technical selling on concerns about development of U.S.

Corn futures went down slightly as the market awaited a clearer picture of harvest yields.

The dust has settled after the USDA released the Quarterly Grain Stocks Monday morning at 11:00 am.


"Unfortunately it looks like the Black Sea region and Europe will continue to dominate such tenders with USA wheat not seen with much of a chance", one trader said.

CBOT agricultural futures traded mixed on Thursday, with soybean futures falling slightly despite traders are awaiting more Chinese purchases of USA soybeans.

"We were surprised that USDA didn't make an adjustment in USA corn production for 2018 because stocks came in much below expectations", said Terry Reilly, senior analyst for Futures International in Chicago.

These firms have purchased a considerable amount of soybeans and pork, and the Customs Tariff Commission of the State Council will exclude the purchases from the additional tariffs.


"A lot of it is follow-through from yesterday", said Brian Hoops, president of USA broker Midwest Market Solutions.

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