CBOT wheat futures ended higher on Friday on escalating tensions in the Middle East, as well as dry conditions in the US Plains wheat belt. Funds bought 4.500 contracts. The USDA said 24 percent of the US wheat crop was located in a drought area as of April 16, up from 18 percent the previous week. As of April 16 funds were 16,6 million tonnes net short in wheat futures. Technically, May wheat may rise within the technical range $ 5,55/$ 5,65, with support around $ 5,35.
CBOT corn futures closed higher as heightened geopolitical tensions spurred a round of bargain-buying and on an ethanol announcement from the US Environmental Protection Agency that signaled demand for the corn-based fuel this summer. Funds bought 4.500 contracts. The US E.P.A. announced that it will temperarily expand sales of higher ethanol blends of gasoline this summer in an effort to reduce potential supply disruptions amid ongoing conflicts in Ukraine and the Middle East. Corn is the primary US feedstock for ethanol. As of April 16 funds were 35,6 million tonnes net short in corn futures. Technically, May corn closed on the top of a neutral trading range. A close above the resistance point $ 4,35 is needed for a further rise.
ICE canola futures rose slightly on Friday, bucking weakness in European rapeseed and palm oil markets. Most-active July canola gained 50 cents to settle at $ 622,80 per tonne. July canola looks technically weak and may test the $ 600 mark again.
CBOT soybean futures settled higher on bargain-buying after the July contract fell to its lowest in seven weeks. Funds bought 6.000 contracts of soybeans, 2.000 contracts of soymeal and 500 contracts of soyoil. Export sales of US soybeans are lagging behind last year’s pace by 8,8 million tonnes, suggesting total 2023/24 exports of 1.670 million bushels ( USDA 1.700 ). As of April 16 funds were 24,7 million tonnes short in soybeans, 2 million tonnes short in soyoil and nearly 1 million tonnes short in soymeal. Technically, the July contract may test its contract low of $ 11,40½. A close below that level may be followed by a test of $ 11. Crude oil rose by 41 cents to $ 83,14, with technical resistance at $ 83,47, followed by $ 85.
Bron: Stigevo