Foreign money futures trading sees significant changes, corn prices decline amid geopolitical volatility

The Chicago Mercantile Exchange (CME) observed considerable shifts in foreign money futures trading on Friday. The currencies involved included the British Pound, Canadian Dollar, Euro Futures, Japanese Yen, Swiss Franc, Australian Dollar, and Mexican Peso. Remarkable open interest changes were reported in the British Pound (up by 691), Canadian Dollar (up by 7,920), and Euro Futures (up by 3,069). The Japanese Yen saw high estimated sales of 207,237 while the Swiss Franc recorded lower sales of 24,091. Open interests for the Australian Dollar and Mexican Peso were noted at 193,744 and 203,594 respectively.

In commodity futures, wheat for December fell by 9.75 cents at $5.5625 a bushel, while Lumber showed an increase. December corn was up by .50 cent at $4.7875 a bushel and December oats lost 14.50 cents at $3.8925 a bushel.

On Thursday, amid turbulent geopolitics and weather issues in Brazil affecting export competition, corn prices on the Chicago Board of Trade declined. This was reported by Tomm Pfitzenmaier of Summit Commodity Brokerage. Despite the challenges, traders are not factoring in much risk premium due to a large corn carryout.

However, the U.S gained competitiveness in grain exports due to a weaker dollar, leading to a rise in wheat and soybeans prices. The Wall Street Journal highlighted that USDA’s grain export sales have fallen below expectations. Jolene Riessen from the Iowa Corn Growers Association called for an evaluation of fertilizer companies’ pricing practices to alleviate rising farming costs during the 2023 Farm Bill talks.

Upcoming key industry reports include the USDA’s weekly grains export inspections and the CFTC’s weekly Commitments of Traders Report.

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