Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures will most likely to trade higher this week on record heat in the US Midwest, and not enough rain in central US Plains, analysts said.Soybean futures are 7-12 cents higher, corn 4-7 cents higher with Wheat called 3-6 cents higher Monday.
Agriculture analysts said opening week CBOT calls are sharply higher as the central US weather forecast is warmer and drier than what was offered last Friday.
Moreover, the extended forecast maintains a warm and dry flow for the central Plains and Midwest well into late July. The market will more aggressively add weather premium into CBOT prices as yield potential declines.
The US Department of Agriculture’s (USDA) Friday COT (commitment of traders) report reflected that managed funds were long 18,000 contracts of Wheat futures, short 46,700 contracts of Corn and short 70,200 contracts of Soybean.
Analysts said, the yield reducing central US weather forecast is likely to force funds to a flat or net long position by mid-July. There just is not enough rain in the forecast into 24 July with heat in the Plains and Midwest with the drought in the Dakotas continuing to spread South and East.