CNS Canada — Corn and soybeans at the Chicago Board of Trade are rangebound ahead of the holidays, according to one analyst.
On Wednesday, the U.S. Federal Reserve raised interest rates by 0.25 per cent, the first increase since 2006, which pressured both corn and soybeans. But outside of that story, corn and soybean markets are sluggish ahead of the holidays.
“There’s no real influence driving us this week,” said John Weyer, director of the commercial hedging division at Walsh Trading.
“But generally we’re at that time of year where things are kind of slow in the markets.”
Since last week, corn has lost four cents per bushel in both the March and May contracts (all figures US$).
Weyer expects soybeans to move in a similar fashion, with an upside between $8.88 and $8.90 per bushel in the nearby contracts.
Since last week, soybeans lost 14.25 cents per bushel in the January contract, and 16.5 cents per bushel in the March contract.
Soybeans were bearish on the week, as the market factored in the Fed announcement and an export tax reduction as Argentina’s new president took office. Mauricio Macri said he will remove the export tax on corn, and reduce the tax on soybeans.
“As we move closer to year-end, and into next year we start paying attention to some of the weather, particularly El Nino,” Weyer said.
Speculation about El Nino’s effects, what they might bring and when, will keep interest in the market into the new year, he added.
— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.