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February 25, 2021

Grain futures close in mixed territories, as tariff deadline approaches

corn FX

Grain futures closed in mixed territories on Tuesday ahead of the United States’s independence day, as corn and wheat benefited from problems in other producing countries, soybeans came under renewed pressure when China and the U.S. made new moves in their chess game over trade ahead of July 6 tariff threats.

Regarding oil news, U.S. crude inventories fell by 4.5 million barrels to 416.9 million barrels in the week to June 29, the American Petroleum Institute (API) said on Tuesday. Gasoline and distillate stocks, also fell.

The U.S. West Texas Intermediate Crude Oil August futures were trading higher by 0.09 percent to close the session at 71.73 USD per barrel, and is currently trading at 71.72 USD per barrel at 1:00 GMT.

However, Brent Oil September futures were higher to trade at 77.83 USD per barrel, gaining 0.55 percent at the close of the session, and is currently trading at 77.96 USD per barrel at 1:00 GMT.

Wheat:

CBOT September Wheat Futures traded at 4.79 USD per bushel at the close of the session, as ambitions for lower world production may give U.S. export hopes only a slight boost in coming months. But higher global prices could lift the U.S. market as well.

Additionally, Wheat ratings which were out on Monday didn’t provide a lift in prices but didn’t create much in the way of a significant movement either. Winter wheat conditions improved while spring wheat faded a little. But coupled with the increase in the acreage reported which was out on June 29 by USDA it suggests a crop close to 1.8 billion bushels.

Corn:

CBOT September Corn Futures closed higher today, after it made session highs on a strong morning open, then gradually faded gains into the early close to eventually trade at 3.47 USD per bushel at the close of the session.

Furthermore, a drop in crop ratings Monday provided support, though markets didn’t start to gain any significant traction overnight until trading began in Europe. USDA reduced the percentage of corn rated good to excellent by 1 percent, which trimmed half a bushel per acre off yield potential. Still, ratings remain strong for the first week of July, pointing out to the potential for record yields.

Soybean

CBOT September Soybean Futures closed lower again today. Choppy overnight trading gave way to a big swing on the price, which lead to fading gains to close at 8.58 USD per bushel.

Meanwhile, Concerns over upcoming tariffs from China were the probable reason for the selloff. But lack of a visible weather threat also weighed down the prices. USDA lowered its rating of the crop, cutting the percentage in good or excellent condition by 2 percent. But overall ratings remain strong, suggesting the potential for above-average yields.

Additionally, bargain hunting and short covering limited losses. Slumping financial markets also gave money managers little reason to go long beans into the holiday.

Ali Hwary

Ali Hwary

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