CBOT wheat futures firmed on Friday as traders covered short positions ahead of the weekend and as worries about tighter global supplies underpinned the market. Reduced wheat crops due to dry weather in Australia and Argentina also kept a floor under prices. Funds bought 5.000 contracts. So far, Ukrainian farmers had harvested 22,2 million tonnes of wheat. Through the next 4 weeks wet weather is expected in the US Plains. As of september 12 funds were 11,7 million tonnes net short in wheat futures. Technically, December wheat may have formed the seasonal bottom at $ 5,70. A technical correction may drop to $ 5,80/$ 5,85.
CBOT corn futures fell on Friday and hovered just above a 2½ -year low, pressured by weak demand and rising supplies from an accelerating US harvest. Funds sold 4.500 contracts. Summer rain has benefited corn crops in much of the EU and should keep production above last year’s drought-hit level, despite a decline in planting and persistent dryness in southeast Europe. In France, corn harvesting has started, with 82 percent of the crop in good or excellent condition. As of september 12 funds were 23,6 million tonnes net short in corn futures. Technically, December corn may find its bottom between $ 4,50 and $ 4,75.
ICE canola futures rose on Friday for the third straight session, lifted by spread trades in which investors bought canola and sold soyoil. November canola gained $ 5,10 to settle at $ 763,90 per tonne. Technically, the support point for canola remains $ 700.
CBOT soybean futures settled lower on Friday on positioning squaring ahead of the weekend and on concerns about demand after a monthly industry report ( NOPA ) showed a slower-than-anticipated US soybean crush last month. Seasonal pressure also hung over the soybean market. Funds sold 12.000 contracts of soybeans and 8.000 contracts of soymeal but bought 1.000 contracts of soyoil. NOPA members crushed 161,5 million bushels of soybeans in August, the lowest in 11 months and well below the average trade estimate of 167,8 million bushels. Soyoil stocks, however, thinned to 1.250 million pounds, the lowest end-of-month oil stocks since October 2017. As of September 12 funds were 5,5 million tonnes long in soybeans, 0,2 million tonnes long in soyoil and 5,6 million tonnes long in soymeal. Technically, November soybeans may find a bottom between $ 12,80 and $ 13,20. Crude oil rose by 61 cents to $ 90,77, with resistance at $ 92,67.
Source : Stigevo