Morning Briefing – US markets stable this morning on Globex

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On October 4, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

The markets consolidated after the recent recovery. They closed slightly lower after sales on technical considerations.

Russia denied Tuesday’s rumors and announced it has no plans to close loading points due to phytosanitary concerns.

The USDA will release its weekly export sales report.

Corn

The December contract closed 3c down at 365c. It trades this morning 1c higher.

The USDA announced a sale of 230kT to Japan.

For this afternoon’s report, analysts expect sales between 1mT and 1.6mT.

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.

Soybeans

The November contract closed 4c down at 861c. It trades this morning around its closing levels.

For this afternoon’s report, analysts expect sales between 900kT and 1.5mT. Soymeal sales are expected between 200kT and 500kT and soybean oil sales between 10kT and 26kT.

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).

Wheat

The December contract closed 4c down at 515c. It trades this morning 2c higher.

For this afternoon’s report, analysts expect sales between 250kT and 550kT.

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%.

Other markets

The main US stock indexes closed higher. The S&P rose 0.1% and the DJ closed on a new record high. The markets were supported by a series of better than expected US economic indicators.

Crude oil prices rose in despite of an increase of higher than expected US stocks in the weekly EIA report (+8m barrels). Prices remain supported by lower Iranian exports while awaiting the US sanctions. The November WTI trades this morning around $76.30 and the Brent around $86.20.

The Euro resumed its decline against a dollar supported by good US economic indicators. The €/$ pair trades this morning around 1.1470.

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