CBOT weekly outlook: U.S. dollar, weather hurt prices

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Published: September 25, 2019

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CBOT December 2019 corn (candlesticks) and November 2019 soybeans (yellow line). (Barchart)

MarketsFarm — Growing strength in the U.S. dollar has hurt commodity prices on the Chicago Board of Trade (CBOT), according to Terry Reilly, grains analyst for Futures International in Chicago.

The impetus for the gain was comments from U.S. President Donald Trump, who remarked a trade deal with China could come sooner rather than later. Trump’s comments came a day after he scorned China for its trade practices.

“It’s one of the largest one-day rallies we’ve seen since Aug. 26,” Reilly said of the greenback’s strength.

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Detail from the front of the CBOT building in Chicago. (Vito Palmisano/iStock/Getty Images)

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Prices for the CBOT soy complex have been lower because traders are disappointed in the lack of confirmation regarding soybean sales to China, he stated.

Weather as well has affected the Chicago market, as most of the continental U.S. is experiencing its second-warmest September on record, Reilly said. In turn, that’s left farmers with good conditions for their crops.

However “Minneapolis wheat is rallying on unfavourable weather for spring wheat in Canada and the U.S.,” the analyst said.

Reilly also commented that corn has struggled of late because of concerns for its demand, as ethanol production is down at its lowest levels in two years.

— Glen Hallick reports for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

About the author

Glen Hallick

Glen Hallick

Reporter

Glen Hallick grew up in rural Manitoba near Starbuck, where his family farmed. Glen has a degree in political studies from the University of Manitoba and studied creative communications at Red River College. Before joining Glacier FarmMedia, Glen was an award-winning reporter and editor with several community newspapers and group editor for the Interlake Publishing Group. Glen is an avid history buff and enjoys following politics.

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