Grains’ futures closed on mixed territory after a report from USDA slashed forecasts of corn carryout but raised soybean ending stocks due to the impact of Chinese tariffs.

July 15, 2018 Off By Yhumi Tsun

Additionally, Oil futures finished sharply lower on Thursday, as concerns about a U.S.-China trade war and the return of Libyan oil to the market offset a warning about a shortage in global crude supplies despite increases in production from the Organization of Petroleum Exporting Countries.

Regarding Oil news, The U.S. West Texas Intermediate Crude Oil August futures were trading lower by 0.3 percent to close the session at 70.33 USD per barrel and is currently trading at 69.95 USD per barrel at 9:00 GMT.

Furthermore, Brent Oil September futures dropped 1.31 percent in the morning session to 73.40 a barrel by 9:00 GMT. On Thursday it gained 0.5 percent, rebounding from a session low of 72.67.

Wheat:

CBOT September Wheat Futures were higher as USDA’s World Agricultural Supply and Demand Estimates (WASDE) report on Thursday especially as the agency lowers its production estimates for European Union crops, CBOT September futures rose 2.1 percent to close the session at 4.84 USD per bushel.

Additionally, USDA’s estimates of 2018 U.S. all-wheat production came in higher this month, moving from June estimates of 1.82 billion bushels to 1.88 billion bushels. That was mostly due to an increase in spring wheat production estimates booming 48 percent higher than June estimates, to 615 million bushels thanks largely to high-quality ratings and favorable growing conditions. Winter wheat production estimates, on the other hand, moved slightly lower, from 1.19 billion bushels in June to 1.19 billion bushels.

Moreover, in Germany, the country’s German Farm Cooperatives estimates its 2018 wheat production is down by 12.1 percent year-over-year, at 791.1 million bushels. Moreover, Saudi Arabia issued an international tender to purchase nearly 22 million bushels of hard wheat for a September or October arrival.

Preliminary volume estimates were for 123,313 CBOT contracts, falling moderately below Wednesday’s final count of 155,192.

Corn:

CBOT September Corn futures rose more than 1.5 percent on Thursday session to close at 3.45-1/5 USD per bushel.

Furthermore, USDA upped its forecast for 2018/19 corn production by 190 million bushels to 14.230 billion bushels, based mainly in increased planted and harvested acres from its late-June acreage report.

On the demand side, USDA raised its projected feed and residual use by 75 million bushels and exports by 125 million bushels. That leaves 2017/18 U.S. corn ending stocks at an estimated 2.027 billion bushels, with 2018/19 U.S. corn ending stocks coming in moderately lower.

In South Korea, purchased nearly 2.4 million bushels of optional-origin corn in a tender that closed Thursday, for arrival in early December, And China sold 48.6 million bushels of its state reserves of corn at auction Thursday, which was about 31 percent of the total available for sale.

Preliminary volume estimates were for 382,087 contracts, down slightly from Wednesday’s final count of 406,512.

Soybean:

CBOT August Soybean futures were lower on Thursday to close the session at 8.38-1/5 USD per bushel.

Additionally, Chinese tariffs have USDA expecting soybean exports to fall by 250 million bushels to 2.040 billion – but not all export news is sour, the agency contends , Despite losing market share in China, soybean exports are maintained in other markets as lower U.S. prices increase demand and market share,” according to this month’s WASDE report. As a result, USDA estimates for 2018-19 U.S.

In South America, USDA projects steady production in Argentina and slightly higher production in Brazil compared to its June estimates, reaching 1.360 billion bushels and 4.391 billion bushels, respectively.

Preliminary volume estimates were for 170,514 contracts, slipping moderately below Wednesday’s final count of 227,789.