Wheat edges higher , while Soybean and Corn ease ahead of USDA Friday reports.July 2, 2018
Wheat prices ended Thursday’s session on a slightly higher note, on the other hand, Corn and Soybean prices fell, as traders preposition themselves for Fridays USDA acreage and grain stocks reports, nervous that they may reveal more bearish stocks and acreage data.
The most recent U.S. Drought Monitor, released early Thursday, shows that nearly 48.7 percent of the country is suffering some level of drought conditions. On the other hand, Dry conditions are not widespread across the Corn Belt at this time, with the exception of Missouri, plus parts of southern Iowa and western Illinois. NOAA’s July forecast predicts mostly above-normal weather across most of the central U.S. next month.
Oil prices firmed on Friday, amid escalating trade dispute between the United States and other major economies cast doubt on future demand growth, but markets stayed tight due to supply disruptions and looming U.S. sanctions against Iran.
U.S. West Texas Intermediate Crude Oil August futures extended its gains on Friday, up by 0.26 percent to trade at 73.60 USD per barrel at 10:00 GMT, after jumping by 1.37 percent at 73.28 on Thursday.
However, Brent Oil August futures surged in European session on Thursday, up 1.61 percent to trade at 78.94 USD per barrel at 10:00 GMT, after appreciating 0.40 percent on Thursday at 77.71 at the close.
CBOT July Wheat futures advanced on for the second consecutive session on Thursday, CBOT July Wheat prices advanced by 0.26 percent on Thursday to trade at 4.79 per bushel at the close.
In fundamentals, analysts predict USDA to decrease its wheat grain stocks to 1.101 billion bushels, from 1.181 billion bushels. Additionally, Analysts also expect the agency to reduce its all-wheat acreage to 47.15 from million acres.
USDA’s export sales report, Wheat sales last week added another 20.7 million bushels in new crop sales, outperforming last week tally of 17.0 million bushels and besting estimates of 13.8 million bushels. Meanwhile, Wheat export shipments last week reached 13.5 million bushels.
In export news, Jordan released another international tender for the purchase of 4.4 million bushels of hard milling wheat.
Preliminary volume estimates were for 101,955 CBOT contracts, falling nearly 35 percent below Wednesday’s final count of 156,082.
CBOT July Corn futures Tumbled by 1.92 percent on Thursday to trade at 3.45 per bushel at the close.
In Fundamentals, analysts predict USDA to increase its Corn grain stocks to 5.276 billion bushels, from 5.229 billion bushels. Additionally, Analysts also expect the agency to revise to the upside its corn acreage to 88.46 from 88.03 million acres
Meanwhile, Corn weekly export sales added 33.5 million bushels in old crop sales, there was also 25.1 million bushels in new crop sales, totaling 58.5 million bushels. Nearly 300 percent more than last week’s total of 19.9 million bushels. Furthermore, Corn export shipments last week reached 40.9 million bushels.
In the export space, China sold 41.7 million bushels of its state corn reserves at auction Thursday, the sale was roughly 26.5 percent of the total available for sale.
Preliminary volume estimates were for 412,107 contracts, drifting moderately below Wednesday’s final count of 487,224.
CBOT July Soybean futures ended the session on bearish territories, down by 0.81 percent on Thursday to trade at 8.61 at the close, U.S –China trade relation jitters continues to weigh on prices.
In Fundamentals, analysts predict USDA to considerably increase its soybean grain stocks to 1.235 billion bushels, from 996 million bushels. Additionally, Analysts also expect the agency to revise upwards its Soybean acreage to 89.68 from 88.98 million acres.
In USDA’s export sales report, Soybean exports saw the sale of 13.2 million bushels in old crop sales last week, and 23.6 million bushels in new crop sales, tallying 36.8 million bushels. That’s nearly 200 percent more than last week ’s total of 19.5 million bushels and came in significantly higher than trade estimates of 35.7 million bushels. Moreover, Soybean export shipments last week totaled 42.6 million bushels.
Preliminary volume estimates were for 192,004, falling significantly below Wednesday’s final count of 283,572.