CBOT weekly outlook: Bargain buying lifts some commodities

MarketsFarm — Despite an ever-changing economic environment due to the global COVID-19 pandemic, ag commodity prices may be sheltered from the worst bearish sentiments.

“Global import businesses have taken off this week due to lower commodity prices,” said Terry Reilly of Futures International in Chicago.

“If we do see an economic slowdown, we’ll probably see it made up on the back end,” he said. “Everyone needs to eat.”

Wheat prices on the Chicago Board of Trade saw some stabilization mid-week, due to a surge in global import tenders.

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However, the same sort of demand has not materialized for corn.

Corn futures have been “decimated” by lower crude oil prices, which in turn weighed on demand for ethanol.

“Our outlook for corn prices it to grind lower along with crude oil over the next week or so,” Reilly said.

The United States and Canada on Wednesday announced a joint effort to close the U.S.-Canada border to all non-essential travel. An initial tweet from U.S. President Donald Trump said trade would not be affected, but further details would follow.

“As far as agriculture goes, most countries have the most relaxed rules and controls when it comes to moving bulk commodities,” Reilly said, noting Indonesia has recently relaxed restrictions on transporting palm oil.

— Marlo Glass reports for MarketsFarm from Winnipeg.

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