DM Monitoring
CHICAGO: CBOT agricultural futures were in correction in the past week following weeks of rallies, Chicago-based research company AgResource noted.
Nevertheless, the Chicago company remains bullish on agricultural futures as the U.S. dollar declined on the growing prospect of a new U.S. COVID stimulus package with the U.S. Government debt pile to exceed 30 trillion dollars in the second quarter of 2021.
CBOT corn futures settled weaker for the first time in seven weeks. Fundamental input stays bullish as world cash feed markets rise and the U.S. corn remains the world’s cheapest feed supply into summer. Yet, a technical correction was needed. AgResource holds that the recent break allowed a gap left open after the release of U.S. Department of Agriculture’s (USDA) January World Agricultural Supply and Demand Estimates (WASDE) being filled while finding support at short-term uptrend line. With weak longs being liquidated, the outlook remains bullish as there’s no sign that U.S. corn demand is being rationed.
