CNS Canada — Corn and soybeans at the Chicago Board of Trade are stuck in a rut, according to one U.S. analyst, as fresh data revealed high supplies of both commodities.
Corn – Since last week corn futures have shed 10.75 cents per bushel in the March contract, and 10.75 cents per bushel in the May contract.
“Traders are just kind of sitting on the sidelines right now,” said Terry Reilly, senior commodity analyst at Futures International.
Corn is in a two-sided narrow range, he said, as there is a lack of fundamental news in the market.
If corn breaks below US$3.5925 in the March contract — from which it was one cent away at close on Wednesday — prices could move down to about $3.55 a bushel, Reilly said.
“But other than that, it’s kind of dead right now.”
World agricultural supply and demand estimates released by the U.S. Department of Agriculture (USDA) were bearish, as the agency expects corn’s global ending stocks to reach 208.81 million tonnes.
Soybeans – Since last week soybean futures have fallen 14.5 cents per bushel in the March contract and 12.75 cents per bushel in the May contract.
Soybeans are also in a narrow trading range, Reilly said, with the potential to gain ground and find a moving average around $8.75.
Traders are watching weather in South America for indications on where to move next, and mostly favourable conditions have pushed prices lower.
“They’re watching exports as well, seeing if China purchases are starting to pick up after prices dipped in the past few days,” Reilly said.
USDA’s estimates were also bearish for soybeans, with global ending stocks projected at 80.42 million tonnes.
— Jade Markus writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.