Grain Futures ended Monday’s session on mixed territoreies as the U.S. and Canada reached a new trade agreement

Grain Futures ended Monday’s session on mixed territoreies as the U.S. and Canada reached a new trade agreement

October 3, 2018 0 By Ali Hwary

Grain Futures ended Monday’s session on mixed territories, with both Corn and soybean futures ended the session on positive notes while wheat futures closed at nearly unchanged levels, with positive trade news between US and Canada fueled optimism in grains markets, with Soybean  Futures adding 1.36 percent and Corn futures surged by 2.38 percent. Meanwhile, Wheat futures edged lower by 0.49 percent.

On late Sunday, The U.S. and Canada reached a new trade agreement, this will allow NAFTA to evolved into a new U.S.-Canada-Mexico Agreement (USMCA). President Trump says the new agreement will open markets to U.S. farmers and manufacturers, as well as reduce trade barriers.

In terms of weather forecasts, Much of the Central U.S. can expect seasonally warm daytime highs for the rest of the week, as the upper Midwest and Plains cool down to below-average temperatures by the weekend

On the energy front, WTI Oil prices rose on Monday’s session to a near two-month high as OPEC stops short of pledging oil rises on today’s session to trade at $75.60 per barrel at the close, and is currently trading at 85.20 at 11:00 GMT.

Meanwhile, Brent Oil traded higher to close the session to a near three years high at $85.50 per barrel and is currently trading at 85.20 at 11:00 GMT.

Wheat:

CBOT Wheat December futures were lower on Monday’s trading session, to end the session at $5.09 per bushel, and currently trading at $5.09-1/4 per bushel at 11:00 GMT.

Analysts expect USDA to report a 44% winter wheat corp to be planted for the 2018/2019 farming year in its Monday afternoon crop progress report – up from 28% the week prior.

Wheat export inspections last week reached 13.6 million bushels, also down slightly from the prior week’s total of 15.7 million and on the low end of trade expectations that ranged between 12 million and 18 million bushels. The Philippines came in as the No. 1 destination for U.S. wheat export inspections last week, with 4.1 million bushels.

 

In exports, Morocco received no offers in its tender to import as much as 12.4 million bushels of U.S. wheat. The tender closed last Friday.

Preliminary volume estimates for Monday were for 82,230 CBOT contracts, slightly down from Friday’s final tally of 106,731.

Corn:

CBOT Corn December futures ended the trading session on higher notes ended the session at $3.65-3/4 per bushel and is currently trading at $3.57-1/4 per bushel at 8:00 GMT.

Corn export inspections for the week ending September 27 came in at 52.9 million bushels, the figure was marginally below last week’s reading of 52.9 million bushels, with Mexico being No. 1 destination for U.S. corn export inspections last week, with 13.6 million bushels.

The European Commission reduced its 2018 EU corn production estimates from 2.527 billion bushels in August to 2.437 billion bushels.

Meanwhile, in South America, Brazil’s September corn exports reached 134.8 million bushels in September, up 18% from August but down 42% from September 2017.

Preliminary volume estimates were for 245,657 contracts, falling significantly from Friday’s final count of 348,346.

Soybean:

CBOT Soybean November futures jumped on Monday’s session, lifted by U.S.-Canada new trade agreement.

Soybean futures ended the session at $8.57 per bushel at the close and is currently higher to trade at $8.45-1/2 bushel at 8:00 GMT.

Soybean export inspections last week reached 21.7 million bushels, down moderately from the prior week’s total of 26.4 million bushels and on the low end of trade expectations, which ranged between 16 million and 31 million bushels. Egypt was the No. 1 destination for U.S. soybean export inspections last week, with 3.5 million bushels.

Brazil’s September soybean exports were up nearly 8% from a year ago, reaching 169.4 million bushels. The country also tallied 1.29 million metric tons of soy meal exports and 85,000 MT of Soy oil exports last month.

Preliminary volume estimates were for 218,235 contracts, slightly ahead of Friday’s final count of 214,711.

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