The price of wheat fell Tuesday in Chicago after the jump of the day before, benefiting corn which continued to rise, while soybeans, in slight progress, benefited from the figures of Chinese demand.
The main wheat contract, which jumped nearly 5% on Monday after a report of lower than expected production in the United States, suffered profit taking, dropping 1.09%. The price of the cereal had risen sharply after the release of the Wasde report from the US Department of Agriculture (USDA) on Monday showing US production revised sharply. “From a fundamental point of view, however, the price of wheat should continue to rise due to the ongoing disaster for spring wheat due to the drought in the northern plains and the Canadian prairies”, said Michael Zuzolo of Global Commodity Analytics and Consulting.
Corn continued its rise following the USDA’s weekly State of American Crop report on Monday which showed, contrary to expectations, that growing conditions “Showed little improvement”, noted Jack Scoville of Price Futures Group.
Soy continues its upward momentum.
Soybeans continued their upward trend modestly. Oilseeds benefited from a solid increase in imports in June announced by China, although they came mainly from South America. Medium term, “This shows that their herd of pigs” which feed on soybean meal, “Consolidates and recovers from the bout of swine flu”, suggested Michael Zuzolo. The price of soybeans has also been carried by the oil market as rapeseed in the plains of North America also suffers from drought, which increases its price, noted the analyst. “The brokers are betting on the drought which affects the rapeseed market and by contagion, this also benefits soybeans”, added Jack Scoville.
The bushel of wheat for September delivery ended at $ 6.3375 from $ 6.4075 on Monday, down 1.09%. A bushel of corn (about 25 kg) for delivery in December ended at $ 5.4975 from $ 5.4075 at the previous close, a gain of 1.45%. A bushel of soybeans (about 27 kg) for delivery in November closed at $ 13.5175 against $ 13.5025, grabbing 0.11%.