CORN
Corn price closed at the beginning of the week on May 22, recovering after the previous strong wave, increasing by 6.5 USD/ton, supported by strong buying demand. Technically, corn prices reached the oversold zone last week, so the price rally in the early part of this week is not surprising, according to analysts. Corn prices continued to increase by $ 2.5 / ton on May 23, according to a report earlier this week, the Conab Food agency estimated the progress of the safrinal crop as of May 20 has completed $ 0.4 of the area. .
Closing the session on May 24 and May 25, the price of CBOT corn increased by 3.9 to 1.3 USD/ton. Traders are concerned about the restrictions on Ukraine’s grain exports, even though the safe corridor agreement was extended last week.
Closing the last session of the week on May 26, corn prices continued to increase by 5.3 USD/ton, this is the 5th consecutive increase compared to the previous week, reaching the highest level in a month. So far, the market still expects a high corn harvest in the 2024 crop year.
WHEAT
Wheat prices increased slightly by 0.4 USD/ton in the first session of the week on May 22. In the Black Sea region, the grain export agreement extended by two months last week also helped ease concerns about supply issues. Russia and Ukraine are the world’s major exporters of wheat and corn, with prices often competitive compared to other origins. Wheat prices increased by 5.9 USD / tons on May 23, the market is worried about Ukraine’s grain exports encountering restrictions despite the safe corridor agreement has been extended since last week.
The opposite trend with corn, wheat price fell sharply by 5.9 USD/ton on May 24 due to selling pressure to take profit on the trading pole after the previous increase session. Abundant supply of wheat for export with competitive prices from Russia is also a factor that affects the price of CBOT again. Wheat prices continued to fall on the 25/5 session following the downward trend of crude oil prices and the appreciation of the USD.
Along with the market trend, wheat price increased by 4.3 USD/ton in the last session of the week on May 26.
SOYBEAN AND SOYBEAN MEAL
Soybean and soybean meal and soybean meal prices increased in the first session of the week on May 22, in which soybean price increased sharply by 12.5 USD/ton, soybean meal price increased by 3.4 USD/ton. As with corn, analysts commented on the technical factor that CBOT corn prices reached oversold territory last week, so this week’s rebound shouldn’t be surprising.
Closing the session on May 23, the price of soybeans and CBOT soybean meal dropped by 6.9 and 6.4 USD/ton due to positive information about the crop prospects in the US.
Closing the session on May 24, soybean price increased by 0.7 USD/ton while soybean meal decreased by 4.6 USD/ton due to abundant export pressure from Brazil and the addition of supply from Argentina. Besides, the USD appreciation and the weakening of the financial market when the market turned its attention to the US government’s debt ceiling negotiation are factors that cause aversion to risks for investors. .
The price of soybeans and soybean meal CBOT fell in the session on May 25 due to the impact of the USD appreciation while the world crude oil price dropped. Along with that, the information about US agricultural export sales last week was lower than the expectations of the supply market, which is a factor affecting the price of CBOT.
Soybean and soybean meal prices increased by 4.9 and 5.5 USD/ton, respectively, at the end of the week on May 26.
SHORT NEWS
MSC overtook Maersk to become the world’s largest container shipping company 16 months ago and continues to buy more old ships and build new ships to grow its fleet rapidly. In its weekly newsletter, Alphaliner said that MSC’s fleet reached 4,956,720 TEUs on 753 vessels as of May 16, and that the new-build vessels MSC Michel Cappelini and MSC Gemma will be delivered from Yangzijiang and CSSC respectively. This will help MSC cross the 5 million TEU threshold before the end of May.
(Source: phaata.com)
