CBOT commodity prices plummeted!
Chicago Board Commodity Exchange (CBOT) closed on June 20 and reopened on June 21.
Wheat
Closing the session on June 21, CBOT wheat prices fell sharply by 21.7 USD/ton, due to pressure from early harvesting activities in the US and Europe, as well as new efforts to increase grain exports from Ukraine. By the session 23/6, wheat prices still fell sharply following the downward trend of world crude oil prices.
As per Sovecon on June 21 raised its forecast for Russia’s 2022 wheat harvest by 0.6 million tons to a new record high of 89.2 million tons, amid an improved spring harvest outlook. It is expected that in the coming days Russian farmers will start harvesting this year’s wheat crop, which is also an important factor that may have a downward impact on world prices.
According to Reuters, truck drivers in Argentina blocked highways on June 22, in protest against a shortage of diesel fuel that has caused prices to soar. Drivers have to transport goods including grain amid high inflation.
Corn
Following the strong downward trend of wheat, the price of CBOT corn at the end of the session on June 21 also decreased by 9.4 USD/ton, by the middle of the week recovered again after the previous strong declines but at the end of the session on June 23, it continued to decrease by $ 8.4 / tonne to the lowest level in nearly 3 weeks, along with concerns about the global economic recession, prompting investors to sell agricultural commodities. assets on the exchange.
On the world market, the abundant supply from the ongoing harvest in Argentina and Brazil is one of the important factors affecting the price of CBOT at this time.
In Brazil, according to the latest forecasts, the corn safrinha harvest may be larger than initially expected, after surveys of the main growing areas showed optimism.
It is expected that on June 23, DEJIMA ship carrying more than 58,000 tons of Argentine corn will arrive at Vung Tau port.
Soybean meal
Following the same trend, the price of soybeans and CBOT soybean meal at the close of the session on June 21 also dropped quite strongly. In which, the price of soybeans fell in 6 out of the last 7 sessions and on June 23, it fell sharply by 21.8. USD/ton followed the downward trend of world crude oil prices, marking the 8th drop in the last 9 sessions, to the lowest level since the end of May.
Soybean seed and CBOT soybean meal prices are under strong downward pressure following the downward trend of soybean oil prices, as this commodity has been subjected to greater competition from palm oil in recent times (Indonesia boosted palm oil exports again).
