Grain Futures Gained on Friday on the Back of Weaker USD

Grain Futures Gained on Friday on the Back of Weaker USD

July 23, 2018 Off By Yhumi Tsun

Grains futures closed Friday’s session in the green supported by weaker dollar where the greenback fell on Friday after Donald Trump criticize increasing the interest rate justifying that as it would harm the competitive advantage of the country’s economy.

For the few upcoming days, the weather is expected to be normal in the central United States, while the weather of eastern Corn Belt is expected to be rainy over the next week, some areas are expected to receive 3 or more of additional accumulation between today and July 27. Moreover, the weather in eastern Kansas and northern Missouri are expected to be dry.

On oil pace, the prices of oil fell on Friday to end the session in the red at $68.12 a barrel while Brent oil rose to end the session up at $73.00 a barrel. U.S Crude oil was pressured by the fail of KSA to offset the decline in the price of 4.2 percent since the beginning of the past week.

On Monday, both U.S and Brent oil rose to trade at $69.11 a barrel and 74.34 a barrel respectively at 11:00 GMT.



Wheat futures rose on Friday to end the session in the green $515.75 a bushel boosted by a support point and the weaker Dollar to reach its highest price for more than a month.

While on Monday Wheat futures remained flat at $517.50 a bushel at 11:00 GMT.

Moreover, wheat futures found additional support from lower wheat production in the Eurozone and Black Sea region where French Soft Wheat Crop came at 34.42 million tones lower than a year ago by more than 6 percent.

According to Reuters, Taiwan issued an international tender to purchase 3.8 million bushels of U.S. milling wheat for shipment in September or October.

Japan seeks to purchase 2.3 million bushels of western red spring food-quality wheat from Canada in a tender that closes July 24.

For the week, CBOT wheat speculators increased their net short position by another 12,709 contracts to reach 37,402.

Preliminary volume estimates were for 130,001 CBOT contracts, moving 56% above Thursday’s final count of 83,187.


Also, Corn Futures were supported by the technical buying where Corn September closed Friday’s session at 354.25 while it rose on Monday to trade at 356.00 a bushel at 11:34 GMT.

The corn production in South Africa for 2018 rose slightly by 0.7 percent reaching 523.8 million bushels.

For the week, traders of corn increased their short positions by 61,175 contracts reaching 134,442. The trading volume fell on Friday by 25 percent to reach 134,442.

China sold 43.4 million bushels of its state reserves of corn at auction Friday, which was 28.3% of the total available for sale, Reuters Reported.


Soymeal September rose on Friday to end the session at $850.75 a bushel, while it fell on Monday to trade at $855.00 a bushel at 12:00 GMT.

According to Reuters, Soybeans have rebounded after touching a 10-year low on Monday amid concerns regarding the U.S.-China trade row that may reduce American exports.

Furthermore, Soybeans are the most valuable U.S. agricultural export to China, worth more than $12 billion last year, and are facing an extra duty from Beijing in retaliation for an initial round of U.S. tariffs.

The short position of Soymeal Futures increased by 11,657 reaching 79,842 contracts while trading volume rose on Friday by 119,453 to reach 11,657 contracts.