Commodities: Grain prices jump after latest DoA forecasts for soybeans and corn
29-03-2018 18:58
Commodities finished the quarter on a positive note amid gains in grains and in the energy complex.
May 2018 corn on CBoT racked up the biggest gains in the complex, jumping 3.61% to $3.87 a bushel, but remained down by nearly half from its levels seen in Spring 2013.
That was alongside a 1.74% advance for similarly-dated wheat on Thursday to $4.5325 a bushel.
According to the US Department of Agriculture, American farmers were set to plant 89m acres of soybeans in 2018 and another 88m of corn, both of which were less than expected, amid record stockpiles of the two crops.
Live cattle futures on CME on the other hand were giving back 2.84%, changing hands at $1.0258 a pound, whilst profit taking was dragging cocoa 1.58% lower to $2,556 per tonne.
As of 1901 BST, the Bloomberg commodity index was 0.92% higher to 87.56, alongside a 0.06% rise in the US dollar spot index to 90.11.
Natural gas was pacing gains in energy, with the May 2018 NYMEX contract ahead by 1.82% to $2.75/MMBtu, while front month West Texas Intermediate was 1.26% higher at $65.19 a barrel.
Base metals were mostly higher too, with three-month LME copper standing at $6,714 per metric tonne at the London close, after finishing the Wednesday session at $6,671 per tonne.
Nickel futures also put in a solid performance, rising from $13,065 per tonne at the start of the session to end at $13,300 a tonne.
"With fears of a global trade war easing somewhat, LME prices continued to recover broadly from the lows seen on Monday with shorts seen covering for month and quarter end and ahead of the long Easter weekend. Only ali continued to struggle [...]
"Equity markets were also firmer but gold prices edged lower as geo-political situation improves following the apparently positive meeting between the North Korean and Chinese leaders," said analysts at Sucden Financial.
June 2018 gold on COMEX ended drifted 0.195 lower to trade at $1,327.50/oz..
