CBOT closed for the US National Day holiday on July 4 and reopened on July 5
Corn
CBOT commodity prices fell sharply at the beginning of the week, closing the session on July 5, the price of CBOT corn decreased by 10.8 USD/ton. By the session 7/7, following the strong momentum of wheat, corn price recovered by 3.7 USD/ton. Ending the last session of the week 8/7, the price of agricultural products on CBOT floor continued to increase sharply.
The dry weather forecast in Western Europe could mean that the EU’s corn production in 2022/23 will only reach 62 million tons and be far below the level of 68.25 million tons.
The market has sparked rumors that China is back to buying US corn and sorghum and Korean import orders
Farmers in Argentina are in the midst of harvesting the corn crop, the harvest progress has completed 53% of the area.
U.S ethanol production fell in the week to July 1, along with hedge funds’ reluctance to buy corn contracts due to concerns about the weekly U.S. export sales results due tonight. (8/7) according to Vietnam time will reach low.
Wheat
CBOT wheat price, at the close of the session on July 5, dropped sharply by 14.3 USD/ton due to abundant supply pressure from the ongoing harvest in the world’s two leading exporting countries, the US and Russia.
But at the end of the session 7/7, the price of CBOT wheat rose sharply by 11.8 USD/ton thanks to the bottom-fishing buying power of the hedge funds when the CBOT wheat price was at the lowest bottom since the event Russia attacked Ukraine at the end of the month. February 2022
According to Reuters on July 7, the Indian government has adjusted its export policy for wheat flour, specifically requiring traders to secure permission before exporting this item.
Rumors that the Chinese market returned to buy American white wheat.
Beans and dried beans
For soybean seeds and soybean meal, the price of CBOT closed at the beginning of the week on July 5, also fell sharply by 25.9 and 12.9 USD/ton, respectively. By the 7/7 session, the price of CBOT increased again, marking the 2nd consecutive increase.
According to Agricensus, Chinese importers have washed out 5 shipments of US soybeans, due to the uncompetitive signing price.
The market expects China to soon return to buying US soybeans in the context that the oil-pressing profit margin of the billion-population market is gradually recovering when the output price of hogs continuously improves.
The US dollar cooled back from a 20-year high and the recovery in crude oil prices were also factors that boosted grain prices.
