Commodity
05/07/2021 – need to understand why the prices hike so much, and what will happen in the future
Corn, soybeans extend multiyear highs as China adds to buying spree
- Grain markets surged to fresh multiyear highs ahead of the weekend, as traders prepared for possible additional rallies driven by tightening inventories and the USDA’s next crop report due on Wednesday.
- The most-active CBOT corn contract (C_1:COM) closed +1.9% to $7.32-1/4 per bushel, its highest settlement since March 2013 and capping an 8.8% gain for the week, as U.S. rainfall this weekend may fail to quench the driest crop areas.
- The most-active contract for soybeans (S_1:COM) settled +1.3% to $15.89-3/4 per bushel, touching its highest level since October 2012 and rising 3.6% for the week.
- Wheat (W_1:COM) closed +1.1% to $7.61-3/4 per bushel, trading near eight-year highs reached last week.
- ETFs: CORN, SOYB, WEAT
- Among potentially relevant stock tickers: ADM, BG, MOS, CF, ANDE, SEED, VFF, CVGW, ICL, UAN, AVD, BIOX, IPI, FPI, LNN, FMC, LXU, SEB, CAT, DE, AGCO
- The rally in grains that began last year as China accelerated imports of U.S. farm products looks poised to continue, as the USDA reports China bought 1.36M metric tons to be shipped in the 2021-22 marketing year that begins Sept. 1.
- That comes on top of more than 20M tons China already bought in the current season, as it looks to rebuild a growing hog herd that was decimated by African swine flu.
- Crop trader Bunge recently racked up quarterly earnings that more than doubled Wall Street estimates.
