CBOT crop futures sharply lower amid massive selling

Source: Xinhua | 2020-01-06

Chicago Board of Trade (CBOT) agricultural futures settled sharply lower on Friday as investors locked in profits amid export decline and geopolitical tensions.

The most active corn contract for March delivery was down 5 cents, or 1.28 percent, to settle at 3.865 U.S. dollars per bushel. March wheat was down 5.75 cents, or 1.03 percent, to settle at 5.545 dollars per bushel. March soybeans were down 14.75 cents, or 1.54 percent, to close at 9.415 dollars per bushel.

CBOT brokers estimated that funds on Friday sold 5,500 contracts of corn, 4,300 contracts of wheat and 7,000 contracts of soybeans.

CBOT soybeans, which had gained almost 30 cents since Dec. 20, 2019, fell significantly after the U.S. Department of Agriculture (USDA) reported "marketing-year low" soybean export sales for the period Dec. 20-26.

The net soybean sales of 330,300 metric tons for 2019/20 marketing year were down 55 percent from the previous week and 66 percent from the prior four-week average, according to USDA data.

The USDA pegged net wheat sales at 312,900 metric tons for 2019/20 marketing year, down 56 percent from the previous week and 46 percent from the prior four-week average.

Net corn export sales during the same period reached 531,400 metric tons for 2019/20, down 15 percent from the previous week and 43 percent from the prior four-week average.

Rising tensions in the Middle East following the U.S. killing of a top Iranian general not only led to the fall of U.S. stock benchmarks, but also pressured CBOT crop futures, said market watchers.

"The fund flows are in the direction to reduce risk relative to the U.S. strike against a key Iranian general," wrote AgResource, a Chicago-based agricultural research firm.