CHICAGO, Aug. 6 (Xinhua) -- CBOT agricultural futures closed mixed in the past week on an upbeat U.S. July jobs report, Chicago-based research company AgResource said.
Longer term, AgResource stays bullish of agricultural futures amid adverse weather and low stock-to-use ratios.
Corn futures ended slightly lower. The European Union corn crop may fall below 52 million metric tons due to a 50-year drought. The U.S. corn crop is in decline, too, as AgResource pegs the U.S. corn yield at 173.5 bushels per acre as of Aug. 1, with additional yield drops feared.
The world corn consumption will exceed production with the stock-to-use ratios of major exporters declining to a record low. The longer-term price trend is bullish, said AgResource.
Global wheat futures fell in a correction after the prior week's rally. The U.S. market lacks the demand spark needed to attract fresh fund short covering, while European cash prices are beginning to indicate extreme supply tightness in the future, said AgResource.
Seasonally, time is running short to be bearish of wheat as the Northern Hemisphere harvest ends. Wheat seasonally has scored its low by September.
AgResource's bullish wheat thesis centers on record low stock-to-use ratios in non-Black Sea exporting countries. Combined stock-to-use ratios will be record low in the United States, Canada, Europe and Australia. Although Russian wheat offers are aggressive, they will struggle to export more than 36 million metric tons, which leaves the world short of exportable wheat.
Soybean futures were under pressure at the start of the week, found a support at midweek and rallied to heady gains ahead of the weekend, said AgResource.
Based on limited rainfall and hot temperatures across much of the Midwest and Plains states, ratings of U.S. soybeans are expected to decline 1 to 2 percent on Monday. AgResource maintains a bullish outlook, as November soybeans are expected to test 14.50 to 15.00 U.S. dollars with new contract highs possible if the heat and dryness persist through August. ■
