Soft Commodities Price Watch: Grain Traders Readjust Positions

on Jul 11, 2013
Listen Thursday, July 11th: After falling due to weak Chinese trade data yesterday, grain futures edged higher today, as investors readjusted positions ahead of the release of the monthly report by the U.S. Department of Agriculture (USDA) on U.S. and global grain supplies later in the session. Traders also continued to monitor weather conditions across grain-growing regions in the U.S. Midwest and the Great Plains. A drier, warmer weather trend may develop in the region next week, increasing stress to corn and soybeans in the western part of the country, especially Nebraska and Kansas, DTN reported yesterday.

On the Chicago Board of Trade (CBOT), the corn price for September delivery was 1.1 percent higher at $5.5988 a bushel. Earlier today, the contract hit a session high of $5.6013 a bushel, the highest level since June 28, as market analysts expected the USDA to cut its corn harvest forecast to 13.983 billion bushels in the current market season, down from the 14.005 billion bushels estimated last month.

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Elsewhere on the CBOT, the soybean price for August delivery was up 0.7 percent at $14.7438 a bushel, after reaching a session high of $14.7525 a bushel. Analysts suggest that the USDA will modestly upgrade its estimate on domestic supplies of the oilseed from the agency’s last forecast of 265 million bushels.
Among other grains, wheat gained for the fourth day in Chicago, the longest winning streak since March, amid signs of rising import demand and as dryness in Russia, which is a major wheat exporter and competes with the U.S. for business on the global market, may result in lower-than-expected production there.

The CBOT wheat price for September delivery was 0.8 percent up at $6.8463 a bushel. The contract rose by as much as 0.9 percent earlier in the session to hit a daily high of $6.8488 a bushel. Milling wheat for November delivery traded on NYSE Liffe in Paris gained 0.4 percent to €198.25 a tonne.
**Sugar and Coffee Up on Brazil Rate Hike**
!m[Sugar and Coffee Rebound after Brazil Hikes Rates](/uploads/story/3905/thumbs/pic1_inline.jpg)

Raw sugar and Arabica coffee futures rebounded in New York today, after top producer Brazil raised the benchmark lending rate, boosting prospects for a stronger real and slower growth in revenue from commodity exports. Recent concerns that South and Central America were withholding supplies until prices recover also remained.
On ICE Futures U.S. Exchange, the Arabica coffee price for September delivery was $1.2295 a pound, up 1.2 percent on the day. The contract rose by as much as 1.5 percent earlier in the day to hit a session high of $1.2328 a pound. Robusta coffee on the NYSE Liffe in London climbed 0.6 percent to $1,883 a tonne.
Sugar futures for October delivery were also up today, advancing 0.4 percent to $0.1628 a pound, while white, or refined, sugar fell 0.8 percent to $466.70 a tonne in London. Elsewhere, cocoa in London advanced 0.7 percent and rose 1.7 percent in New York. Cotton futures for December delivery traded at $0.8682 a pound, little changed on the day.


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