Chicago Board of Trade (CBOT) agricultural futures closed mixed in the trading week which ended on January 18, with upbeat trade expectations pushing up soybean prices despite the lack of exports data due to the partial U.S. government shutdown.
The most active corn contract for March delivery was up 3.5 cents weekly, or 0.93 percent, to 3.8175 U.S. dollars per bushel. March wheat fell 1.75 cents, or 0.34 percent, to 5.1775 U.S. dollars per bushel. March soybeans rose 6.5 cents, or 0.71 percent, to 9.1675 U.S. dollars per bushel.
Due to the prolonged federal government shutdown, the U.S. Department of Agriculture has not updated its exports sales, supply and demand reports since December 22, 2018. CBOT traders had to learn from other channels for statistics, with eyes on any new development concerning the ongoing U.S. and China trade talks.
A sign on the door of the United States Department of Agriculture (USDA) office announces the Farm Service Agency (FSA) is closed due to the government shutdown on January 15, 2019 in Paw Paw, Michigan. / VCG Photo
A generally negative export outlook at the beginning of the trading week dragged down soybean futures, which suffered almost two percent fall in total during the first two sessions.
After a moderate recovery on Wednesday, soybeans were boosted sharply on Thursday by the Wall Street Journal report that the United States is considering lifting tariffs imposed on China in a bid to hasten a trade deal between the world's two largest economies.
The news not only pushed up U.S. equities, but also led to expectations among CBOT traders for better soybean exports performances.
The double-digit rise in soybean futures also took corn and wheat higher, though without any solid evidence of increasing exports sales.
Hot and dry weather conditions in many parts of Brazil, which made market watchers lower soybean and corn output forecasts there, gave additional support to CBOT futures.
The adverse weather, which will likely continue through the next two weeks, has reportedly posed serious threat to about 20 percent of Brazil's soy crop, and 30 percent of first-crop corn there.
As a result, CBOT corn futures posted nearly one percent weekly gains.
CBOT wheat, which started the new year higher following a 18 percent annual rise in 2018, ended the week lower after profit-taking on Friday pared early gains.