Outlook of agricultural futures market
Corn market tried to follow the rise of active soybean complex, but the number of market participants expect further growth is not as significant and prices failed to stay near the highs of the day, the session was closed at the level of opening.
Export sales in decline and the development of good planting season in the United States only cause pressure on prices. Still technically market is booming and the indicator "momentum" maintains upward trend. Ethanol production increased by 1.5% for the week, but behind last year's figures. According to official data harvested completed in Argentina for 30%, well below the annual average, but yield is growing slowly and might not crop suffered severe damage from rains.
Market growing for wheat yesterday, not from new purchases, and due to the closure of the "short" positions funds. Speculators expect export sales (out today because Monday was the holiday) slightly recover and support the market. Over the past week should be included in the purchase of new crop from United States to Brazil. European traders concerned because of heavy rains that could damage the quality status of crops in Europe.
Yesterday's session for the soybean complex was marked by another rapid growth that could be observed repeatedly during the spring. Just yesterday funds bought about 20 000 contracts of soybeans, 10 000 meal and 4 000 oil. In total last month on soybean long positions rose by 200 000, the July contract rose more than a dollar per bushel, and the funds earned over one billion dollars. Support provided yesterday rumors that buyers somewhat reoriented their purchases last month (volume 1 mln. tons) from South America to the United States.