Grains declined on Thursday on the reports of the U.S. Department of Agriculture. According to analysts, investors were contented with the present price rate and thus consolidating it in the processes the following day. Additionally, analysts say that the current prices may continue trading at the same level for the time being.
More so, USDA has placed this corn production of the current at 14.578 billion bushels with yields at a record 175.4 bushels for every acre. That alone was beyond the pre-report outlooks, which had been toughened by a problematic growing period. However, analysts added that the improved genetics were reported to have helped in the said corn crop rally.
"It appears as though the old adage 'Big crops get bigger' is going to hold true for the corn complex this year,” Karl Setzer told reports.
Soybean Futures recovered on the news of better market estimates for the coming periods.
December corn futures added 0.6% in the recent period to $3.43 1/2 per bushel at the Chicago Board of Trade (CBOT) whereas the January deliveries of soybean deals increased by 0.2% to $9.87 per bushel.
After the USDA cuts down domestic and global supply estimates, Wheat futures consequently gathers bulls in its recent trades last Friday.
There has been no reported shortage of wheat globally. The revised global stock forecasts of the ageny for 2017-18 are at 267.53 million metric tons – a record high.
December wheat futures at CBOT added 0.6% to $4.31 1/2 per bushel.
Black Sea Wheat Entry
In other news, CME Group will be inaugurating the trades of Black Sea wheat and corn futures based on S&P Global Platts' price rates soon which is targeted for the fast-growing exporting regions.
The Chicago-based derivatives exchange told reports that the cash-settled Black Sea Wheat FOB (Platts) and Black Sea Corn FOB (Platts) futures contracts will instigate trades On December 18, 2017, focus to supervisory authorization.
A CME spokeswoman added that the group would sustain their prevailing Black Sea grain future that provides physical distribution. The contracts have charmed a trivial capacity of potential engagements at the time being.
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