Morning Briefing – Wheat slightly higher, corn and soybeans stable this morning on Globex

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On October 2, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

The markets closed higher after the new NAFTA deal. According to D. Trump, the deal between the US, Canada and Mexico should open markets and lower trade barriers for the US farmers.

The USDA released yesterday afternoon its weekly export inspections report and, after market close, its Crop Progress report.

Corn

The December contract closed 9c up at 366c. It trades this morning 1c lower.

26% of the corn was harvested as of the 30th of September. The 2013-2017 average at date is 17%. The market expected 26%. 69% of the grains are in good to excellent condition (unchanged).

The weekly export inspections of 1.34mT were slightly down from a week earlier but above market expectations.

According to the USDA, the 1st of September stocks were at 2.14b bushels. The number is 7% down from one year ago, but above the 12th of September estimates and above market expectations.

The European Commission lowered its 2018/2019 production estimates. Imports are up 8% from 2017.

In France, 24% of the harvest was done as of the 24th of September. 58% of the grains are in good to excellent condition.

Soybeans

The November contract closed 12c up at 858c. It trades this morning 3c lower.

23% of the soybeans were harvested as of the 30th of September. The 2013-2017 average at date is 20%. The market expected 27%. 68% of the beans are in good to excellent condition (unchanged).

The weekly export inspections of 591.1kT were down from a week earlier and in the lower end of expectations.

According to the USDA, the 1st of September stocks were at 438m bushels. The number is 45% up from one year ago and above the 12th of September estimates.

Brazilian exports are up 8% from 2017.

The European Commission rose its 2018/2019 production estimates. The numbers are however 10% lower than one year ago. Imports are 7% up from 2017.

Wheat

The December contract closed basically unchanged (+0.4c) at 509c. It trades this morning 2c higher.

43% of the winter wheat was planted as of the 30th of September. The 2013-2017 average at date is 40%. The market expected 44%.

The weekly export inspections of 369.3kT were down from a week earlier and in the lower end of expectations.

According to the USDA, the 1st of September stocks were at 2.38b bushels. The number was 5% up from one year ago but within market expectations.

The European Commission lowered slightly its 2018/2019 production estimates. Export estimates for 2018/2019 remained unchanged.

Other markets

The main US stock indexes closed higher. The S&P rose 0.4%, supported by the new NAFTA deal between the US, Canada and Mexico.

Crude oil prices rallied up to their 4 years highs after the announcement of the new NAFTA deal. The November WTI trades this morning around $75.60 and the Brent around $85.10.

The Euro dropped further against the US dollar. The €/$ pair trades this morning around 1.1570.

 

© Sitagri

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