Corn futures are trading significantly lower to start the day after the USDA did not increase export demand in yesterday’s WASDE report causing prices to give up previous gains for a lower close which may be bleeding into today.
Yesterday’s WASDE report saw no changes made to US ending stocks in corn, but world ending stocks were lowered slightly. Argentinian and Brazilian corn production estimates were left unchanged.
In South America, the northern regions of Argentina have received too much rain that is making the corn harvest unfavorable, while central and southern Brazil remain dry. Temperatures are expected to be warm there over the next 6-10 days.
Soybeans are trading lower this morning following losses in both corn and wheat.. May soybeans have been unable to significantly break above the 10-day moving average over the past month as the US struggles with poor export demand.
A Bloomberg survey is estimating Brazilian soybean production at 168.7 mmt for 24/25 which is just a hair below the USDA’s estimate. This would be 2.7 mmt higher than the agency’s last estimate in February.
Yesterday’s WASDE report saw US ending stocks untouched at 380 mb, a slight decline in world ending stocks, and no changes to Brazilian or Argentinian soybean production which are at 169 mmt and 49.0 mmt, respectively.
All three wheat classes are trading lower to start the day with pressure potentially from a move higher in the US dollar. While yesterday’s report was relatively neutral for corn and soybeans, it was bearish for wheat.
Yesterday’s WASDE report saw US ending wheat stocks increasing t0 819 mb from 794 mb last month, and world ending stocks were increased as well. Trade had previously thought that Russian production would be lowered which would lower world stocks.
Winter wheat ratings fell in Kansas by 2 points to 52% good to excellent, but in Texas ratings fell more sharply by 6 points to just 28% good to excellent. In Oklahoma, ratings improved by 11 points following much needed rain to 46% good to excellent.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
