Chicago Market Closure
Agricultural commodities traded in Chicago adjusted with improvements for wheat and soybeans, and reductions in maize. Concerns about the state of North American crops and the increase in prices in Russia and Ukraine served as support.
WHEAT
On the first day of the week, the wheat futures traded in Chicago adjusted with increases in their prices. This would been a consequence of the increase in prices that occurred in large cereal exporters such as Ukraine and Russia. Mainly, the value of Russian cereal rose sharply after sales to Egypt last week which could improve the competitiveness of the North American cereal. In addition, the latest cuts made to the production estimates of several producing countries would act as support for Chicago prices due to strong international demand.
MAIZE
Maize contracts operated in Chicago adjusted with slight reductions in their values. This would be generated, on the one hand, by taking profits after the contract with the highest volume traded reached maximum values in 5 months. On the contrary, the strength in foreign demand for cereal produced in the US would lessen these losses. In this sense, the United States Department of Agriculture (USDA) reported sales to China for 596,000 tons corresponding to the next commercial season. In addition, expectations remain that the USDA will reduce its crop health rating by 3 percentage points. It is estimated that the rains that occurred over the weekend were less than expected by the agents.
SOY
Soybean futures traded in Chicago adjusted with small increases in their prices. During the round, the contract with the highest volume traded reached maximum values in more than two years. This would been a consequence of the persistence in the concern of the agents regarding the drought that occurs in productive areas of the United States. In addition, the rains that occurred in the North American Midwest were disappointing for part of the analysts. Average analysts expect the USDA to present reductions in the state of North American crops by 3 percentage points this afternoon. The forecasts would even indicate a low probability of rainfall in the coming days.
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