Chicago Board of Trade (CBOT) have seen an upbeat week for the grains futures, but the prices are still at seasonal lows.
During the trading week which ended Sept. 1, the most active corn contract for December delivery rose 1.75 cents, or 0.5 percent, to 3.5525 dollars per bushel.
Following losses for four consecutive sessions, corn prices jumped on Thursday by 3.55 percent. Analysts contributed the sharp rally to short-covering by managed funds.
Many investors maintain a neutral outlook for the corn, with bio-fuel margins soaring, profitability returning to much of the livestock sector.
The U.S. Department of Agriculture will release its yield estimate in two weeks, and the AgResource Company suggests now the national corn yield lies closer to 166 bushel per acre, adding that any recovery to 3.65-3.75 U.S. dollars for December delivery will offer the next selling opportunity.
Wheat futures ended the week steady to higher in Chicago. The most active wheat contract for December delivery rose 3.5 cents, or 0.80 percent, to 4.3875 dollars per bushel.
Canada’s August crop report, which estimates the 2017 Canadian wheat crop at 25.5 million metric tons, or about 20 percent less than the previous year, pushed the CBOT wheat futures higher since Thursday.
European wheat also rebounded following the rise in Chicago in response to the low estimates for the Canadian wheat crop.
Still, the current prices of CBOT stand at a seasonal bottom and analysts believe some sort of rally effort is expected heading into December.
World’s major wheat importers are responding to the relatively low prices and a rising ship lineup in Russia has made it evident.
Soybeans continued to recover in another week of slow trade, with support from building export demand and short-covering by managed funds. The most active soybean contract for November delivery went up 5 cents, or 0.53 percent, to 9.495 dollars per bushel.
New soybean sales remain low, though some analysts suggest the sales do not reflect real global demand, especially from China.
The U.S. Department of Agriculture forecasts China’s 2017-2018 imports to increase by 7.5 million metric tons to 94 million metric tons, which means an average of 1.8 million metric tons of soybean imports every week. As long as no trade war breaks out between the two economic giants, the U.S. soybeans will get enough support from the Chinese market. Enditem