Speculative demand boosts prices of soybeans and corn on US exchanges

On the U.S. stock exchanges continues the speculative growth of prices for soybeans, wheat and corn, although the reduction in the number of open exchange contracts indicates the willingness of traders to lower prices, forcing them to fix the profit and close the contracts.

According to the Commission on trade in commodity futures for the week, traders have reduced the number of long positions on soybean 208,7 to 215,9 thousand contracts, while the number increased from 2.9 to 7.1 thousand contracts.

during the week, soybean futures grew by 4% to the psychological level of 12 $/bushel or 440,8 $/t, after which traders began to fix profit. A decrease in purchases of soybeans by China, and precipitation forecasts in South America reduced prices, however the increase in short positions indicates traders ' expectations regarding the resumption of growth of quotations in the near future.

wheat Futures on US exchanges remain stable, although the rains in the Midwest have lowered quotations of winter wheat in Chicago. For the week, the number of net long positions in wheat in Chicago fell by 14.1 thousand contracts, which led to a reduction in the total long position to 89,169 thousand contracts. The number of short positions increased by 4,117 thousand to 74,755 thousand contracts.

the corn Futures in Chicago remains high of $170/MT due to stable demand. For a week the number of long positions increased to 332,177 thousand contracts, and short – 2.18 thousand to 53,288 thousand contracts, indicating expectations of price growth in the short term.

Forecasted this week, rainfall in Argentina will improve the condition of crops of corn and soybeans and reduce the pressure of weather factors on prices. High prices reduce the demand from China, who last week purchased only 120 tonnes of us corn. Rainfall in Brazil for the next two weeks will significantly affect the future price trends.