Wheat futures rose on bargain buying, while US-China trade jitters weighed on Soybean and Corn.June 28, 2018
Winter wheat prices trended moderately higher on bargain buying on Wednesday, on the other hand, Corn and Soybean prices fell flat.
Additional volatility could be expected on Thursday and Friday, with USDA releasing export, grain stocks and acreage reports over the next two days.
In the weather space, The central U.S. will probably see a warming trend rolling into the weekend into early next week, with warmer-than-average temperatures probable through at least the Independence Day holiday.
Oil prices steadied on Thursday, with U.S. crude pulling back from 3-1/2-year highs, but supply remained tight with investors concerned by the prospect of a significant fall in crude exports from Iran due to U.S. sanctions.
U.S. West Texas Intermediate Crude Oil August futures extended its gains on Thursday, up by 0.65 percent to trade at 72.74 USD per barrel at 11:00 GMT. after jumping by 2.28 percent at 72.29 on Wednesday.
However, Brent Oil August futures also advanced on Thursday, up 0.75 percent to trade at 77.93 USD per at 11:00 GMT, after adding 1.19 percent on Wednesday at 77.43 at the close.
CBOT July Wheat futures advanced on bargain buying activities on Wednesday, after falling by for three consecutive sessions.
CBOT July Wheat prices advanced by 1.97 percent on Wednesday to trade at 4.78-3/4 per bushel at the close.
Analysts expect USDA Thursday morning export report to show wheat export sales between 9.2 million and 18.4 million bushels for the week ending June 21.
In the export space, Tunisia bought 4.6 million bushels of soft milling wheat and 3.4 million bushels of animal feed barley, both from optional origins, in an international tender that closed Wednesday.
Ukraine’s summer harvest has increased to 9% complete, with average wheat yields so far coming in at 45.5 BPA.
Meanwhile, Egypt’s 2018 wheat harvest finished trending lower, with domestic production landing at 115.7 million bushels. Egypt has been the world’s No. 1 or No. 2 wheat importer this year, vying with Indonesia for the top spot.
Preliminary volume estimates were for 156,082 CBOT contracts, up around 8% from Tuesday’s final count of 144,548.
CBOT July Corn futures edged down by 0.07 percent on Wednesday to trade at 3.52-1/4 per bushel at the close.
Analysts expect USDA Thursday morning export report to show corn sales between 31.5 million and 55.1 million bushels for the week ending June 21.
In farming, South Africa’s government has revised upwards its estimates of the country’s 2018 corn crop by 2%, currently at 519.9 million bushels.
Preliminary volume estimates were for 445,509 contracts, falling 29% from Tuesday’s final count of 627,933.
CBOT July Soybean futures were little changed to end the marginally lower by 0.09 percent on Wednesday to trade at 8.67-1/4 at the close, as the unsettling U.S –China trade relation continues to weigh on prices.
Analysts expect USDA Thursday morning export report to show soybean export sales between 14.7 million and 36.7 million bushels for the week ending June 21.
Meanwhile, China reported the sale of 3.9 million bushels of its state soybean reserves at auction on Wednesday; the figure was 21% of the total available for sale.
A report from the Chinese Academy of Agricultural Sciences indicates that impact of bilateral tariffs could have a severe impact on some agricultural commodities, the agency suggests that U.S. soybean, cotton, wheat and beef exports to China could lose as much as 50% of their value.
Preliminary volume estimates were for 251,592 contracts, slipping 10% below Tuesday’s final count of 279,655.