Latest news with #IKONCommodities
Zawya
6 days ago
- Business
- Zawya
Wheat falls more than 2% on supply pressure
Chicago wheat futures fell more than 2% on Monday as ample supplies from continuing Northern Hemisphere harvests weakened sentiment. Corn and soybeans also fell on expectations of bumper U.S. production as trading resumed after a U.S. holiday on Friday. "There is general harvest pressure in the wheat market," said Ole Houe of IKON Commodities in Sydney, adding that U.S. wheat had rallied to a level where it was uncompetitive. The Chicago Board of Trade's most active wheat contract fell 2.2% to $5.44-1/4 a bushel by 1014 GMT. Corn lost 2.9% to $4.24 a bushel and soybeans retreated 1.9% to $10.28-1/4 a bushel. Wheat prices were weakened by an accelerating U.S. harvest and big crops in the Black Sea region and western Europe. "Attention is moving to the U.S. Department of Agriculture (USDA) U.S. crop progress reports later on Monday," one trader said. "Generally dry U.S. weather should allow good U.S. wheat harvest progress this week." Additional downward pressure on wheat was applied by reports that Russia had cut its wheat export tax to zero, raising the prospect of larger Russian shipments. It is the first time the tax has been removed since its introduction in 2021 to protect Russia's domestic market from price rises by discouraging exports. Traders were also concerned about the uncertain outcome of trade talks between the United States and its key partners, particularly China, the world's largest soybean importer. The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday. The EU will cut Ukrainian wheat imports by up to 80% to address its farmers' concerns, quotas showed on Friday in a move that could steer Ukrainian exports to Asia and Africa. (Reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore Editing by Sumana Nandy, Rashmi Aich and David Goodman)
Business Recorder
7 days ago
- Business
- Business Recorder
Wheat falls more than 3% on supply pressure; corn, soybeans drop
SINGAPORE: Chicago wheat futures slid more than 3% to a one-week low on Monday, as ample supplies from the ongoing Northern Hemisphere harvest dragged down the market. Corn and soybeans fell about 1.3% on expectations of bumper US production as trading resumed after the US Independence Day holiday on Friday. 'There is general harvest pressure in the wheat market,' said Ole Houe, head of advisory services at IKON Commodities in Sydney. 'US futures in particular for wheat had rallied to a level where US was uncompetitive.' The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 3.2% to $5.46-1/4 a bushel, as of 0230 GMT, after hitting its lowest since July 1 earlier in the session. EU wheat eases in US holiday lull Corn lost 1.4% to 4.27-1/2 a bushel and soybeans shed 1.4% to $10.33-3/4 a bushel. Wheat prices are being anchored by an accelerating US winter crop harvest and big crops in the Black Sea region and western Europe. There was additional pressure on the wheat market as Russia, the world's No. 1 supplier, decided to cut its export tax to zero. It is the first time the tax has been removed since it was introduced in 2021 to protect the domestic market from price spikes and to discourage excessive exports. Drought in the Rostov region, Russia's top wheat and grain producing region in 2024, is not seen affecting the overall grain harvest in Russia, Agriculture Minister Oksana Lut said on Friday, the state RIA news agency reported. Participants in agricultural markets are closely watching the outcome of trade talks between the United States and its key partners, particularly China, by far the world's largest soybean importer. The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August 1. The European Union will cut Ukrainian wheat and sugar imports by up to 80% to address its farmers' concerns, according to quotas announced on Friday, that are likely to drive Ukraine growers to sell more to markets in Asia and Africa.
Business Recorder
25-06-2025
- Business
- Business Recorder
Chicago soy rises on oil rebound; wheat, corn fall on ample supply outlook
BEIJING: Chicago soybean and soyoil futures edged higher on Wednesday, supported by a rebound in oil prices as investors monitored the fragile ceasefire between Iran and Israel. The most-active soybean contract rose 0.24% to $10.39-4/8 per bushel after three straight sessions of losses. Soyoil gained 0.78% to 53.02 cents per pound. 'Soybean and soyoil are taking a breather as they overshot a bit to the downside,' said Ole Houe, head of advisory services at IKON Commodities in Sydney. Oil prices edged higher after plummeting in the last two sessions, underpinning soyoil, which often tracks crude because it is used in biofuel as a substitute for fossil fuel. 'The crude oil market has stabilised at levels marginally higher than before the Israel-Iran war so that has given some confidence we don't need to slide too much for now,' Houe said. Warm, rainy weather in the US Midwest is expected to aid crop development in the coming days, according to forecasters. Corn eased 0.06% to $4.16 a bushel, hovering near this year's lowest level, as benign weather across the US Corn Belt and strong global crop prospects pressured prices. In Brazil, farmers are estimated to produce a record 123.3 million metric tons of second corn, agribusiness consultancy Agroconsult said on Tuesday. China's May soybean imports from Brazil jump Second corn, which Brazilian farmers are harvesting now, will account for about 80% of national output this year. It is mainly exported in the second half, competing with US corn suppliers on global markets. Wheat slid 0.45% to $5.49-4/8 a bushel, weighed by a strong production outlook across the northern hemisphere and accelerating harvest activity. Argus Media raised its forecast for Russia's 2025-26 wheat output to 84.8 million tons, up from 81.3 million tons a year ago.
Zawya
20-06-2025
- Business
- Zawya
Chicago wheat slips as harvest pressure sets in; soybeans set for weekly gain
BEIJING - Chicago wheat futures pulled back on Friday after a pre-holiday short-covering rally in the U.S., as harvest pressure looms in Europe and the Black Sea region. The most-active wheat contract dropped 0.59% to $5.87 a bushel, as of 0211 GMT, but remains near a four-month high and is set for a weekly gain. Wheat found some support in the previous trading session, as weather concerns in parts of the U.S. and Europe prompted speculators to cover short positions. "We think that most of the rally will be given back over the next week due to harvest pressure just about to come along in EU and Black Sea," said Ole Houe, head of advisory services at IKON Commodities in Sydney. Soybeans rose 0.02% to $10.75 per bushel and remained on course for a third consecutive weekly gain. Strength in the energy market this week, driven by heightened tensions between Israel and Iran, has lent support to agricultural commodities like soybeans and corn. Higher crude oil prices enhance the appeal of soyoil and corn as biofuel feedstocks. Corn eased 0.17% to $4.32-6/8 a bushel, with prices hovering near their lowest level of 2025. Corn is poised to end the week lower. "Corn is holding the line as no real news and the Israel attacks are not enough to keep any enthusiasm in the face of a 400 million metric tons of U.S. corn crop," Houe said. In Argentina, corn yields are exceeding initial expectations in some areas for the 2024/25 crop, the Buenos Aires Grains Exchange said on Thursday, though it maintained its overall harvest forecast at 49 million metric tons as excessive moisture slowed fieldwork. Traders are awaiting market direction from the U.S. Department of Agriculture's weekly export sales report, which will be released later on Friday.
Business Recorder
15-05-2025
- Business
- Business Recorder
Chicago soybeans retreat from near 10-month highs as soyoil slumps; wheat rises
BEIJING: Chicago soybean futures slipped from near 10-month highs on Thursday, weighed down by a sharp drop in soyoil as falling crude oil prices and mounting uncertainty over the U.S. biofuel policy pressured the market. Soyoil futures dropped 5.18% to 49.61 cents per pound, the steepest daily decline since June 2023, partly due to weaker crude oil prices following a surprise U.S. inventory build and renewed hopes for a U.S.-Iran nuclear deal. Soybeans slipped 0.93% to $10.68 per bushel, snapping a five-session winning streak. The market had drawn support from a Monday proposal to extend the biofuel tax credit (45Z), which underpins demand for soyoil in renewable diesel production. Shifting expectations about U.S. biodiesel policy have disrupted the soyoil market, with rumours of lower-than-expected target for biomass diesel mandates and delays in biofuel tax credit rule-making adding to market uncertainty. Optimism over a temporary truce in the U.S.-China trade war lent some support to soybean prices, but traders and analystswarned of uncertainty ahead of the U.S. marketing season. On Wednesday, agribusiness consultancy AgResource warned U.S. soybean exports may drop 20% and that prices will plunge if the U.S. and China fail to resolve their trade dispute. Soybeans, corn up on US-China trade optimism; wheat flat Corn rose 0.34% to $4.47 per bushel, supported by concerns about potential unfavourable weather during the U.S. summer. In rival supplier Brazil, 2024-25 corn output is estimated to be about 125 million metric tons, according to the Brazilian Association of Corn and Sorghum Producers. Wheat rose 0.57% to $5.27-6/8 a bushel, stabilizing after hitting its lowest in nearly five years on Wednesday. 'Wheat is just stabilising after a big run-up overnight, said Ole Houe, director of advisory services at IKON Commodities in Sydney, adding that prices will likely strengthen further due to dryness concerns in hard red winter wheat growing areas. Traders are awaiting the U.S. Department of Agriculture's weekly export sales report, due later in the day. Commodity funds were net buyers of corn, wheat, soybean and soyoil futures contracts on Wednesday, traders said. They were net sellers of soymeal futures, traders said.
