Futures Markets See Volatility Amid Profit-Taking Pressure
The corn futures market has been on a rollercoaster ride recently, hitting a three-year high in mid-week and then consolidating due to profit-taking pressure. The state of the French corn crop has deteriorated further, with a fresh record low following severe drought and heat this summer. Traders are keeping an eye on the weekly USDA crop progress reports for any signs of improvement.
Meanwhile, soybean prices have also been affected by profit-taking, but the market remains bullish due to ongoing tensions between the US and China. The expected summit meeting between President Trump and Chinese leader Xi Jinping is a major focal point for the soybean market. World Weather Inc. predicts regular showers and thunderstorms in the northwestern Corn Belt, which will benefit some soybeans.
In contrast, wheat prices have been hit by follow-through selling, with December SRW wheat falling 20 1/4 cents to $7.34. The winter wheat futures market bulls took profits ahead of a three-day holiday weekend, citing the US envoys' trip to Russia and Ukraine to talk peace.