The price of the main contracts on agricultural products listed in Chicago rose sharply on Friday after impressive liquidation movements the day before.
After a wave of drought in the Midwest, showers Thursday, especially in Iowa, had helped to drop prices of corn, wheat and soybeans Thursday. A greenback bolstered by a less accommodating Federal Reserve after its monetary policy meeting had also pushed down agricultural prices, denominated in dollars. But investors obviously felt that the drop had been too large and returned to the market.
“After heavy losses on Thursday, bargain-hunting buyers returned to agricultural markets today, sparking a spate of technical buys that drastically pushed up prices at the close,” sums up Farm Futures’ Ben Potter. Daily. “A favorable yield weather forecast for the remainder of June could lead to even more volatility in the next two weeks,” Potter warns.
In particular, the Corn Belt and the Great Plains are expected to receive rains during the weekend and early next week.
The most traded bushel of wheat (about 27 kg) for September delivery closed at $ 6.6575 from $ 6.4300 at the previous close, rising 3.54%. A bushel of corn (about 25kg) for delivery in December ended at $ 5.6625 from $ 5.3250 on Thursday, climbing 6.34%. A bushel of soybeans (about 27 kg) for delivery in November closed at $ 13.1300 against $ 12.5275 the day before, appreciating 4.81%.