Morning Briefing – US markets stable this morning on Globex

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On September 28, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

Corn and soybeans closed slightly higher, supported by good export sales in yesterday’s weekly report. The commodity funds were net buyers of corn and soybeans and net sellers of wheat.

The USDA will release its quarterly stocks report.

Corn

The December contract closed 2c up at 365c. It trades this morning 1c lower.

The funds were net buyers of 7000 contracts.

The 2018/2019 sales of 1.73mT were up from the previous week and well above market expectations. Exports of 1.36mT had Mexico as primarily destination.

Sovecon lowered its corn export estimates for Russia.

The International Grains Council rose its global 2018/2019 production estimates by 10mT.

Soybeans

The November contract closed 5c up at 855c. It trades this morning around its closing levels.

The funds were net buyers of 4000 contracts.

The 2018/2019 sales of 870.7kT were slightly down from the previous week but above market expectations. Exports of 819.2kT had Spain as primarily destination.

Wheat

The December contract closed 4c down at 513c. It trades this morning 1c lower.

The funds were net sellers of 4000 contracts.

The 2018/2019 sales of 657.1kT were up 40% from the previous week and 59% above the 4 weeks average. Exports of 483.7kT had Mexico as primarily destination.

Sovecon lowered its wheat export estimates for Russia.

The International Grains Council rose its global 2018/2019 production estimates by 1mT.

Other markets

The main US stock indexes closed higher. The S&P rose 0.3%. The markets are still analyzing Wednesday’s rate hike and J. Powells comments. The next rate hike is expected in December. Three further rate hikes are expected in 2019.

Crude oil prices remain rather stable. They rallied earlier this week as the producing countries decided not to commit to an output increase replacing the Iranian exports hit by the US sanctions.

The November WTI trades this morning around $72.20 and the Brent around $81.70.

The Euro dropped further against the US dollar after the US rate hike. The €/$ pair trades this morning around 1.1640.

 

© Sitagri

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