Soft Commodities Price Watch: Wheat Little Changed with U.S. Markets Closed
iNVEZZ.com Friday, July 5th: Grain futures have been little changed today as U.S. markets remained closed until 10:00 ET (15:00 BST) after yesterday’s Independence Day holiday.
Without guidance from the Chicago Board of Trade (CBOT) and as traders weighed signs of importer demand against an outlook for bigger harvests in the Black Sea region, milling wheat has remained almost unchanged in Paris.
According to Russia’s Agriculture Ministry, the country harvested 10.3 million tonnes of wheat as of July 4, compared to 5.8 million tonnes a year ago. Separate data has revealed that Pakistani importers bought 200,000 tonnes of wheat from Russia, Ukraine and Romania. China may also step up wheat imports as local output falls, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service said on Wednesday, while Egypt’s state grain buyer this week bought 180,000 tonnes in its first foreign wheat tender since February.
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Wheat for November delivery has added 0.1 percent to €197 a metric tonne on NYSE Liffe in Paris by 10:37 BST, while the November-delivery corn price has declined 0.1 percent to €177.50 a tonne.
**Rubber Falls on Signs of Slowing Growth in China**
Rubber snapped a weekly advance on signs that economic growth is slowing in China, the world’s largest consumer of the commodity used in tires. The December contract dropped 0.7 percent to end at 245.1 yen a kilogram ($2,444 a metric tonne) on the Tokyo Commodity Exchange (TOCOM) today. Earlier this week, the TOCOM rubber price gained 3.7 percent, its biggest rise since the week through May 10.
Rubber for January delivery on the Shanghai Futures Exchange fell 1.7 percent to close at 17,935 yuan ($2,925) a tonne, while Thai rubber free-on-board dropped 0.2 percent to 82.45 baht ($2.65) a kilogram today, according to data by the Rubber Research Institute of Thailand.
Reports have shown this week that expansion in China’s non-manufacturing and manufacturing industries is losing momentum as the government seeks to redirect the economy away from its dependence on exports. “Some investors sold rubber amid worries that slow growth in China may reduce demand,” said Navarat Kaewpratarn, senior marketing official at Future Agri Trade Co., as quoted by Bloomberg.
**Cocoa Climbs to Two-Week High in New York**
!m[Rubber Pares Gains, While Cocoa Hits Two-Week High](/uploads/story/3725/thumbs/pic1_inline.png)
Trading on ICE Futures U.S. in New York resumed at 08:00 ET (13:00 BST) following yesterday’s national holiday. Almost immediately after opening cocoa for September delivery climbed to 2,250, the highest level since June 17, as reports of dry weather in West Africa worried investors. Rainfall in top cocoa growers Ivory Coast and Ghana has been below normal since June 10. In London, the contract rose as much as 0.7 percent to the highest price since June 13.
Sugar has also advanced today, marking its first gain in seven days. Raw sugar for October delivery has added 0.2 percent to $0.1645 a pound on ICE, while white sugar for August delivery in London has climbed 0.1 percent to $475.40 a tonne.
Arabica coffee has climbed 0.9 percent to $1.225 a pound on ICE, while the Robusta coffee price in London has been unchanged at $1,820 a tonne.