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

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On October 3, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

The markets closed higher. Corn and soybeans were supported by rains in the Midwest that may delay the harvest. Wheat rallied 2%, supported by the possible closing of up to 30 grain loading points in Russia due to “phytosanitary concerns”.

The grains remain supported by the new NAFTA deal. According to D. Trump, the deal between the US, Canada and Mexico should open markets and lower trade barriers for US farmers.

Operators also reacted to the Crop Progress report, released Monday evening after market close.

Corn

The December contract closed 2c up at 367c. It trades this morning around its closing levels.

According to the USDA, 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 last weekly export inspections of 1.34mT were slightly down from a week earlier but above market expectations.

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

Soybeans

The November contract closed 8c up at 866c. It trades this morning 2c higher.

According to the USDA, 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 last weekly export inspections of 591.1kT were down from a week earlier and in the lower end of expectations.

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 10c up at 519c. It trades this morning 2c higher.

According to the USDA, 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 last weekly export inspections of 369.3kT were down from a week earlier and in the lower end of 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 mixed. The S&P closed basically unchanged, the DJ on a new record high and the Nasdaq down 0.5%.

Crude oil prices remained stable. The rallied earlier this week up to their 4 years highs after the announcement of the new NAFTA deal. The November WTI trades this morning around $75.20 and the Brent around $84.80.

The Euro stabilized after having dropped against the US dollar during the last sessions. The €/$ pair trades this morning around 1.1580.

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