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CBOT

CBOT weekly outlook: South American weather still key for soy, corn

CNS Canada — South American weather uncertainty is lending underlying support to soybean and corn futures at the Chicago Board of Trade, with speculators likely to remain on the long side until production issues are more clearly sorted out, according to an analyst.

“The funds don’t want to give up the ship, and there’s enough of a weather concern in there for them to stay long and bid up,” said Sean Lusk of Walsh Trading in Chicago on the buying interest in soybeans and corn. Read more

Soybean futures – will they outperform in 2017 too?

Soybean futures outperformed in 2016, rising for the first time in four years, by 14.4%, compared with a 1.9% decline in Chicago corn futures, and a 13.2% drop in wheat.

While the US harvested a record crop, demand has been strong too – supported by Chinese imports which also set a record high, with demand supported by a recovery in the fortunes of the country’s important hog producers.

Meanwhile, values of soybean oil have been supported by disappointing global output of rival palm oil, with the latest El Niño casting a long shadow over South East Asian production.

But will such factors continue to support soybean futures in 2017? Or will the US produce another record harvest to dampen price prospects?

Read more

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Canada Markets

Percent Change in January Grain Prices

With January 2017 just around the corner, here is a look at how futures markets for selected grains tend to act during the month, while considering the percent change in price over January on the continuous monthly chart. On average, over the past five years, both canola and corn futures tend to close higher in January, with the canola future averaging a 0.5% increase in January, while corn futures have average a 0.9% increase. Read more

Corn field photo

A weather market for corn in 2016?

Nearby corn futures remain above the early January lows, but continue to struggle under the weight of a number of negative market fundamental factors. Those negative factors include both supply and demand considerations. On the supply side, domestic corn production has been large for three consecutive years and the USDA now projects 2015-16 marketing year […]