CHICAGO, Feb. 11 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural commodities closed higher over the trading week which ended on Feb. 9, mostly on volatile South American weather and increase export demand for U.S. crop.
The most active corn contract for March delivery rose 0.5 cent weekly, or 0.14 percent, to 3.62 dollars per bushel. March wheat delivery went up 2.25 cents, or 0.5 percent, to 4.49 dollars per bushel. March soybeans added 4.25 cents, or 0.43 percent, to 9.83 dollars per bushel over the week.
Corn futures finished the week off the highs, but still fractionally higher. South American weather and surprising increase in the U.S. export forecast were the key drivers for the CBOT trade.
Fundamentally, ethanol production margins remains positive with average margins across the corn belt estimated at an average of 0.13 dollar per gallon versus just 0.03 dollar a year ago. Feed demand should also remain strong through the first half of 2018 amid record hog herds and larger cattle on feed supplies.
Funds last week covered nearly 48,000 contracts and cut their net short position by more than 60 percent. The question now is weather the dry weekend forecast for Argentina materialize, and if funds decide to cover the remainder of their position.
Wheat futures finished the week higher, despite a more bearish February world agricultural supply and demand estimates(WASDE) report. The U.S. Department of Agriculture(USDA) lowered cut their estimate for U.S. wheat exports, and stocks were again back above 1 billion bushels.
Funds bought over 13,000 contracts in Chicago, and 17,000 contracts in Kansas City which put them net long in Kansas City for the first time since mid October. Funds sold just over 800 contracts in Minneapolis, where funds have been net short for 2 consecutive weeks, after being long since last May.
Soybean markets ended the week higher as ongoing concerns for Argentine crops offered support. The February WASDE report should have been bearish for the markets, as the USDA made a record large February decrease to the soybean export projection, and conversely a record large increase to the stocks forecast.
Rains have fallen across the northern parts of Argentina, but the heaviest rains have stayed north of the soybean belt, while limited rains are scheduled for the lower 0.75 inch of the soybean crop areas over the next 10 days.
