Grains’ futures expanded on their consecutive declines to settle near their multi-weeks lows

Grains’ futures expanded on their consecutive declines to settle near their multi-weeks lows

June 19, 2018 0 By Ali Hwary

Grains’ futures expanded on their consecutive declines to settle near their multi-weeks  lows pressured by the trade tensions between the U.S. and China as well as the current beneficial weather and forecasts in addition to the global ample supply.

Despite the drought concerns that had little effect on the Wheat crops, the favorable weather and the beneficial rainfall expectations in the Midwest and the other key growing regions weighed heavily on the crops.

Oil futures fell sharply during Friday’s trading session thus exceeding their one month’s lows pressured by the consideration from Russia and Saudi Arabia of increasing their Crude Oil output were the West Taxes Intermediate July futures plunged to settle at 64.34 U.S. Dollars per barrel and Brent July futures plummeted to 73.07 U.S. Dollars a barrel with both below their key moving averages on Friday’s close.

West Taxes Intermediate July futures contract is currently trading at 64.79 U.S. Dollars a barrel, and Brent July futures contract is currently trading at 74.03 U.S. Dollars a barrel at 11:15 AM GMT.

Wheat

CBOT Wheat July futures’ contract fell for the third consecutive trading session to settle down at 4.99-1/4 U.S. Dollars a bushel. Even though the grain remained in the red for third straight trading sessions, it managed to recover from its one month’s low while the recovery was limited by the strong moving average technical resistance level. CBOT Wheat July futures’ contract is currently trading at 4.93-1/4 U.S. Dollars a bushel at 11:15 AM GMT.

The large global ample supply remains the major factor that is weighing on the Wheat futures with little or no effect from the trade tensions between the U.S. and China. Meanwhile, the drought concerns and the expectations that the world’s largest Wheat producer could produce notably less than the forecasted crops this year lent support to the commodity.

Speculators remind net sellers for the Wheat July futures but to cut their positions by, 122 contracts to 11,595 this week. Furthermore, Friday’s Preliminary volume estimates were 233,124 contracts, up slightly from Thursday’s 224,758 contracts.

 

Corn

CBOT Corn July futures’ contract settled slightly lower in the red at 3.61-1/4 on Friday’s close to witness its fourth weekly decline. CBOT Corn July futures’ contract is currently trading at 3.58-1/2 U.S. Dollars a bushel at 11:15 AM GMT.

The losses came after the commodity recovered from its several month’s low, which is July’s all-time low, as the favorable weather conditions and the expected beneficial rain continues to weigh on the grin.

Moreover, the rising trade tensions between the U.S. and China had stronger effect on Corn than Wheat futures were the U.S. President Donald Trump imposed a 50 Billion U.S. Dollars tariffs on Chinese imports as well as the considerations by Mexico of additional 4 Billion U.S. Dollars tariffs aimed at the U.S. Corn futures.

Speculators lowered their long positions by 55,844 contracts to 84,463 for the week while Friday’s preliminary volume estimates were 641,617 contracts, down slightly from Thursday’s 778,627 contracts.

 

Soybean

CBOT Soybean July futures’ contract ended Friday’s trading session significantly lower at 9.05 U.S. Dollars a bushel thus continuing its several weeks’ constitutive losses to remain near its one-year low.  CBOT Soybean July futures’ contract is currently trading at 9.06-1/4 U.S. Dollars a bushel at 11:15 AM GMT.

The favorable weather in the U.S. Midwest that raised the forecast for an ample harvest, as well as the stronger U.S. Dollar, kept their downwards pressure on the commodity hence significantly contributing to its losses.

Furthermore, the trade tensions between the U.S. and China, the world’s largest Soybean importer, also weighed on the commodity as they derived commodity-based investment funds to liquidate their long positions ever more.

Soybean speculators changed their net long positions to net short after cutting 47,988 contracts while Friday’s preliminary volume estimates were at 442,781 contracts, up from Thursday’s 264,820 contracts.

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