US agricultural futures fall

CHICAGO, Jan. 7 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures fell across the board on Thursday, led by wheat.

The most active corn contract for March delivery fell one cent, or 0.2 percent, to settle at 4.94 dollars per bushel. March wheat lost 5.25 cents, or 0.81 percent, to settle at 6.4225 dollars per bushel. March soybean shed 6.25 cents, or 0.46 percent, to close at 13.5525 dollars per bushel.

CBOT agricultural futures fell on profit taking ahead of Tuesday's U.S. Department of Agriculture (USDA) January Crop Report. The CBOT correction was needed following a nonstop rally that started in late 2020 with March soybeans racing to 13.73 dollars, the highest price in 7 years, Chicago-based research company AgResource noted.

USDA reported new buying of U.S. 2020-2021 soybeans emerging from an unknown destination, rumored to be China. China has already imported a record 27.3 million metric tons with an estimated 8.8 million metric tons of U.S. soybeans left to ship, and is importing 1.1-1.4 million metric tons of U.S. soybeans weekly.

USDA announced the sale of 213,000 metric tons of U.S. soybeans for the 2020-2021 crop year and 130,000 metric tons for 2021-2022 to unknown buyers, both rumored to be to China. This massive purchase pace by China suggests a U.S. 2020-2021 soybean export pace of 2,375 million bushels, 175 million bushels above the December USDA forecast, AgResource noted.

For the week ending Dec. 31, the U.S. export sales were 10.1 million bushels of wheat, 29.5 million bushels of corn and a marketing year low of 1.4 million bushels of soybeans. For respective crop years to date, the United States has sold 765.7 million bushels of wheat, up 10 percent; 1,730 million bushels of corn, up 137 percent; and 2,012 million bushels of soybeans, up 84 percent.

The U.S. Census Bureau reported that the United States exported a record 408 million bushels of soybeans in November of 2020.

Weather forecast showed it is drier for Argentina with the two storm systems being weaker. A drier and warmer period follows longer term.

Near to below normal rain will fall across Northern Brazil into January 20. Weather forecast for Southern Brazilian and Argentine is concerning.

Corrections are needed to lead bull market, AgResource noted. And it stays bullish.