The U.S. Presidential election has the global markets on edge. Waiting for the results next week will be sure to add movement in commodities.
As the world, especially in the United States, sees an increase in Covid-19 cases some commodity prices are weakening.
Grain markets as a whole are still digesting last week’s USDA update.
Traders have been concerned about demand for cocoa all year but as we enter “chocolate season” we see that even chocolate/candy purchases have been affected by Covid-19.
Political unrest in Ivory Coast has added volatility to an already erratic market…. but there's a lot going in cocoa futures.
Soybeans futures closed at the highs of the week, unlike corn and wheat, as it’s certainly pricing in a much smaller 2020 crop size than what was being advertised weeks ago. However, crop condition ratings remain well above both last year and the long-term average.
Demand from China, Iowa crop, conditions have all contributed to the recent rallies in Corn and Soybean futures.
Corn futures made a slow and steady walk higher this past week, with the Sunday night open being the low. For Soybean futures the low of the week was also the Sunday night open with a push into Fridays high tick close.
Genetically engineered Corn and Soybeans both saw their ratings drop in Monday's grain report sending prices higher so far this week.
Wheat fell on weather reports out of Australia and South America while Corn and Beans hung there, supported by a lack of rain in August.