U.S. grains: Corn hits 18-month low
Soybean, wheat futures firm
By Mark Weinraub, GFM Network News
via Canadian Cattlemen - March 17, 2020
Chicago | Reuters — U.S. corn futures plummeted 3.3 per cent to an 18-month low on Tuesday as traders said current prices were too high to generate demand from overseas buyers with the ongoing harvests in Brazil and Argentina providing cheaper offerings on the export market.
Corn prices fell to their session lows just ahead of the close as the crude oil market turned lower. A weakened energy sector will cut demand for corn-based ethanol, and grain dealers at ethanol plants have already begun to slash their bids for corn on the cash market.
Soybean and wheat futures were slightly higher on bargain buying, but the gains were kept in check by fears about the global economy staggering under the weight of the coronavirus pandemic.
“Beans opened higher overnight, a kind of ‘turnaround Tuesday’ short-covering move, but lacking in passion,” Charlie Sernatinger, global head of grain futures at ED+F Man Capital, said in a note to clients.
Strength in the dollar, which rallied as companies and investors sought out the most liquid currency due to concerns about economic shutdowns, also contributed to stifling demand for U.S. exports. A strong dollar makes U.S. commodities relatively more expensive on the global market.
“There is just a feeling that we are going to have to align with the South American prices,” said Greg Grow, director of agribusiness at Archer Financial Services...
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