CHICAGO, Nov. 10 (Xinhua) — Chicago Board of Trade (CBOT) agricultural futures closed lower in the past week, mainly due to raised estimates of 2018/19 world ending stocks and uncertain export outlook.
In the trading week which ended on Nov. 9, the most active contract for December corn fell 1.5 cents, or 0.4 percent, to 3.6975 dollars per bushel. December wheat delivery went down 6.75 cents, or 1.3 percent, to 5.02 dollars per bushel. January 2019 soybeans were down 1 cent, or 0.1 percent, to 8.8675 dollars per bushel.
The U.S. Department of Agriculture (USDA) released on Thursday its monthly supply and demand estimates report.
The November report lowered its estimate for U.S. corn production and indicated smaller interior ending stocks, but the bullish data failed to lift the corn futures this week as world ending stocks are expected to rise.
Official estimates also showed a lowered outlook for U.S. soybean production but USDA increased its estimates for ending stocks, due to decreased export sales. As a result, soybean prices stayed under rising pressure.
Only on the last trading day, CBOT soybeans rebounded following a four-session decline.
Soybeans recorded a 0.88 percent rally while China and the United States held their second diplomatic and security dialogue in Washington on Friday. Before the talks, U.S. Ambassador to China Terry Branstad met with Agriculture Secretary Sonny Perdue on trade issues.
Branstad, former governor of key soybean growing state Iowa, expressed his hope to “develop a framework that can lead to an agreement” with China, the top buyer of U.S. soybeans.
Amid trade disputes with the United States and rising tariffs, Chinese importers have switched to Brazil for soybean supplies, which led to the sharp fall in CBOT soybean prices.
U.S. farmers have constantly urged Washington to resolve trade issues with China as soon as possible, so as not to lose their biggest market.
As for CBOT wheat, USDA released on Monday its updated crop condition report, showing 51 percent of U.S. winter wheat crop in good to excellent condition, down from 53 percent one week earlier. The trade had expected 53 to 54 percent to be rated as good to excellent.
The unsatisfactory crop condition led to significant rises in wheat prices on Tuesday. However, wheat futures failed to keep the momentum and ended the week with a more than one percent fall, though the updated world ending stocks were raised slightly.
Still, analysts with a Chicago-based agricultural research firm, AgResource, believe that U.S. wheat market is well positioned to boost its share of world trade moving forward.
They have cited concerns over new crop production amid lingering dryness in the EU and Black Sea, adding El Nino could also trigger a third year of drought in Australia.