Grain commodity futures’ ended lower on Wednesday’s session, as traders squared positions ahead of Thursday’s USDA WASDE report .October 11, 2018
Grain commodity futures’ ended lower on Wednesday’s session, as traders squared positions ahead of Thursday’s USDA WASDE report that could feature upward revisions of corn and soybean yields.
In terms of weather forecasts, the weather will move west to east as the week progresses, with many parts of the central U.S. expecting daytime highs 8 to 10 degrees cooler than normal by this weekend. Moreover, The Category 4 storm was the fiercest hurricane to hit Florida in 70 years when it came ashore on Wednesday, but its strength waned as it pushed into Georgia. Early on Thursday, it was downgraded to a tropical storm, with top sustained winds diminishing to 60 miles per hour.
On the energy front, WTI Oil prices dropped on Wednesday session to close at 72.37 USD per barrel and currently fell to trade at 71.75 USD per barrel at 9:00 GMT as trade tensions between the U.S. and China escalate, investors are shunning risk assets from equities to oil on fears over slowing growth.
Moreover, Brent Oil tumbled on Wednesday to close at 82.42 USD a barrel and currently fell to trade at 81:48 USD per barrel at 9:00 GMT.
CBOT Wheat December futures were trading higher on Wednesday’s trading session to end the session at 5.09-1/2 USD per bushel, and currently trading at 5.08 USD per bushel at 9:00 GMT.
Reports in USDA WASDE on Thursday morning ’s, analysts anticipate the agency moving U.S. 2018/19 wheat ending stocks higher, from 935 million bushels to 959 million bushels in September.
Ukraine’s 2018/19 wheat exports have reached 221.5 million bushels since July according to the country’s agriculture ministry. Ukraine has also exported around 102.3 million bushels of barley so far this marketing year.
Meanwhile, Russia’s agriculture ministry is expected to increase its 2018 wheat harvest production from prior estimates of 2.36 billion bushels to between 2.49 billion and 2.53 billion bushels.
Initial volume estimates were for 55,465 CBOT contracts, down moderately from Tuesday’s final count of 72,848.
CBOT Corn December futures ended the trading session in the red territory on Wednesday. CBOT Corn futures ended the session at 3.62-1/2 USD per bushel and currently trading slightly higher at 3.61 USD at 9:00 GMT.
Ahead of Thursday morning’s USDA World Agricultural Supply and Demand Estimates (WASDE) report, analysts expect the agency to report 2018 corn production at 14.858 billion bushels across 81.7 million harvested acres, for a per-acre average of 181 BPA. Those estimates are slightly ahead of USDA’s September projections of 14.826 billion bushels with per-acre yields of 181.2 BPA.
In exports, Ukraine’s 2018/19 corn has reached 68 million bushels since July with total grain exports this marketing year down about 9 percent year-over-year so far. However, the country’s agriculture ministry expects final grain exports to exceed the prior marketing year by 6.7 percent by the end of next June.
Initial volume estimates were for 154,118 contracts, falling below Tuesday’s final count of 181,456.
CBOT Soybean November futures declined on Wednesday’s session to end the session down at 8.52-3/4 USD per bushel, while currently trading lower at 8.47-1/2 USD per bushel at 9:00 GMT
Ahead of Thursday morning’s USDA WASDE report, analysts anticipate 2018 U.S. soybean production will reach 4.721 billion bushels across 88.7 million harvested acres for a per-acre average yield of 53.2 BPA, up from the agency’s September estimates of 4.692 billion bushels on average yields of 52.7 BPA.
Meanwhile, China sold 3.6 million bushels of its state reserves of soybeans at auction Wednesday, which was the total amount available for sale.
Initial volume estimates were for 206,281 contracts, down moderately from Tuesday’s final count of 264,725.