CHICAGO, Oct. 21 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures closed lower over the trading week which ended October 20, despite of a better-than-expected weekly export report.
The most active corn contract for December delivery fell 8.25 cents weekly, or 2.39 percent, to 3.445 dollars per bushel. December wheat delivery dropped 13.50 cents, or 3.07 percent, to 4.26 dollars per bushel. November soybeans went down 21.5 cents, or 2.15 percent, to 9.7875 dollars per bushel.
CBOT corn settled this week lower on growing U.S. harvest pressures amid reports of better yields. The improved weather condition in the Midwest has enabled U.S. farmers to go back to fields for harvest, which had been delayed by rainfalls.
The cool temperatures of late July and August obviously helped produce better-than-expected corn yields. Many analysts now predict that the Department of Agriculture may raise U.S. corn yield in its November report.
CBOT wheat futures closed lower as world prices retreated on larger Black Sea exports in September and October, with already plentiful inventories in world market.
A highly notable event should be the closure of the U.S. Wheat Associates (USW) office in Cairo, Egypt, the largest wheat importer in the world.
The USW office has announced to cease its operation on December 1, after some 40 years in Egypt as U.S. wheat has been facing fierce competition from other producers, especially those in the Black Sea area.
USW President Vince Peterson admitted that they need to adjust activities in the Middle East and North Africa, where the supply of much lower priced wheat from Russia significantly increased and gained more and more market shares.
Although a weekly export sales report released Thursday morning showed that U.S. exporters overall sold larger-than-expected amount of wheat for the week ending Oct. 12, the bullish news failed to sustained the wheat prices following a brief rally.
After testing key resistance at 10 U.S. dollars in the previous week, the soybean market turned lower on gradually building harvest pressure. U.S. soybean supplies are still huge while export demand remains strong, especially from Chinese importers.
The AgResource Company has estimated that China will remain a strong buyer of U.S. soybeans into early 2018.
In addition, the late week rally in the U.S. dollar offered resistance to commodity prices.
Analysts maintain that higher prices lie ahead into the fourth quarter this year with funds likely to position long commodities with the spread between stock valuations and the commodities at a record high.
