Corn and Soybean futures are facing moderate losses as the crop season heats up

Corn and Soybean futures are facing moderate losses as the crop season heats up

June 8, 2018 0 By Ali Hwary

Grains’ futures were mixed on Wednesday’s trading session with Corn and Soybean facing moderate losses as the crop season heats up, while Wheat futures traded a bit higher.

Regarding weather news, much of the central U.S. are expecting to see warm weather over the next few days. However, cooler-than-normal temperatures are expected in the Great Lakes area.

Oil prices fell on Wednesday’s session on concerns that global supply is rising after an unexpected increase in U.S. inventories and that Saudi Arabia and other primary producers signaled that they might increase output.

U.S. West Texas Intermediate Crude Oil June futures were down ending the session at 64.99 USD per barrel and now trading a bit higher for 65.05 USD a barrel. On the other hand, Brent Oil August futures ended yesterday’s session a bit higher to trade at 75.72 USD a barrel and currently trading at 75.86 USD at 6:30 GMT.

 

Wheat:

CBOT Wheat July futures were higher on Wednesday due to some technical buying to close at 5.19-1/2 USD per bushel and now trading higher at 5.28-1/2 USD a bushel at 6:30 GMT.

China sold around 5.4 percent of its total available for sale in an auction on Wednesday, which is almost four million bushels of its state reserves of Wheat.

The Dollar value of Russian Wheat exports between January and April this current year are more than 2017’s pace, Wheat exports surpassed 477 million bushels through the first four months of 2018.

Initial volume estimates were down slightly from Tuesday’s count of 194,955 to read 188,549 of CBOT contracts.

 

Corn:

CBOT Corn July futures dropped to their lowest levels since late April on Wednesday’ session to close at 3.78-1/2 USD per bushel but currently trading higher at 3.80-1/2 USD a bushel at 6:30 GMT.

The newest data on Ethanol production will show if improving margins enhanced output after Corn prices fell and fuel prices rose.

In Taiwan, the country purchased around 2.6 million bushels of Corn in an international tender, tracking its origin either from U.S. or Brazil.

The initial report from the CBOT showed daily futures volume fell by nearly 20 percent to read 453,463 and open interest also fell 5,366 despite reasonably active fund buying.

 

Soybean:

CBOT Soybean July futures also faced a downward pressure due to favorable U.S. growing condition, followed by some additional technical selling. July futures ended the session yesterday at 9.94-1/2 USD per bushel and trading now at 9.94-1/4 USD per bushel at 6:30 GMT.

Ahead of the next United States Department of Agriculture export report, analysts expect to see Soybean export sales to total between 14.7 million and 36.7 million bushels

A preliminary report from the CBOT showed daily futures volume up by 28 percent to reach 276,975 while open interest rose by 4,529 despite light fund liquidation.

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