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Wheat futures soar to mult-month highs – but China fears undermine soy

Wheat futures soar to mult-month highs – but China fears undermine soy

Wheat prices soared to multi-month highs, spurred by US weather worries and improved appeal to technical investors, helping corn futures set a near-six-month high too.

But soybean futures fell back as worries over Chinese curbs on imports from the US, besides ideas of a boost ahead to the official estimate for US stocks, which trumped further concerns over the dent to Argentine harvest prospects from sustained dryness.

“Weather is still on the side of the bull, but the US Department of Agriculture report fears for soy are not,” said Mike Zuzolo at Global Commodity Analytics, referring to the prospect on Thursday of the ministry’s monthly Wasde briefing on world crop supply and demand.

The Wasde is expected to lift the USDA estimate for US soybean stocks at the close of 2017-18 (in August) by 26m bushels to 486m bushels, reflecting the slow start to the season for US exports of the oilseed.

Chinese retaliation

Mr Zuzolo also flagged a potential headwind to prices from a report that China, the top soybean importing country, is mulling an anti-dumping probe into imports from the US.

Chinese officials “held a meeting on Tuesday with some Chinese companies to get feedback about the potential impact – no conclusions were reached”, a Bloomberg report said.

Such would represent a further retaliation by Beijing after Washington last month approved import tariffs on Chinese solar panels and washing machines.

Beijing at the weekend announced an anti-dumping and anti-subsidy investigation into imports of US sorghum, raising the prospect of hefty tariffs on the shipments.

Soybean futures for March stood down 0.1% at $9.85 Ÿ a bushel in late deals in Chicago, well below an early high of $9.93 ž a bushel which had taken the contract temporarily above its 100-day moving average.

(Source – https://www.agrimoney.com/news/evening-markets-wheat-futures-soar-to-mult-month-highs—but-china-fears-undermine-soy-52221)

Wheat futures soar to mult-month highs – but China fears undermine soy Reviewed by on . Wheat prices soared to multi-month highs, spurred by US weather worries and improved appeal to technical investors, helping corn futures set a near-six-month hi Wheat prices soared to multi-month highs, spurred by US weather worries and improved appeal to technical investors, helping corn futures set a near-six-month hi Rating: 0

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