Morning Briefing – US markets slightly lower this morning on Globex

Home  /  Morning Briefing  /  Morning Briefing – US markets slightly lower this morning on Globex

On October 11, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

The markets closed slightly lower with operators squaring positions ahead of this afternoon’s WASDE report. Analysts expect higher yields for corn and soybeans and higher ending stocks for wheat.

Corn

The December contract closed 2c down at 363c. It trades this morning 1c lower.

For this afternoon’s report, analyst rose their 2018 production estimates to 14.859b bushels. Final 2018/2019 US stocks are expected at 1.913b bushels. World final stocks are expected at 195mT.

According to Tuesday evening’s Crop Progress report, 34% of the corn was harvested as of the 7th of October. The 2013-2017 average at date is 26%. 68% of the grains are in good to excellent condition (-1%). All numbers were in line with market expectations.

Soybeans

The November contract closed 11c down at 852c. It trades this morning 3c lower.

For this afternoon’s report, analyst rose their 2018 production estimates to 4.722 bushels. Final 2018/2019 US stocks are expected at 905m bushels. World final stocks are expected at 95mT.

According to Tuesday evening’s Crop Progress report, 32% of the soybeans were harvested as of the 7th of October. The market expected 35%. The 2013-2017 average at date is 36%. 68% of the beans are in good to excellent condition (unchanged).

Wheat

The December contract closed 4c down at 510c. It trades this morning 1c lower.

For this afternoon’s report, analyst expect final 2018/2019 US stocks of 959m bushels. According to Tuesday evening’s Crop Progress report, 57% of the winter wheat was planted as of the 7th of October. The market expected 56%. The 2013-2017 average at date is 54%.

France lowered its 2018/2019 soft wheat production estimates.

Bangladesh bought 120kT of US wheat.

Other markets

The main US stock indexes closed sharply lower. The S&P and the DJ lost over 3%. The shares are under pressure with rising bond yields.

Crude oil prices dropped after the weekly API report showing much larger than expected US stocks (+9.7m barrels). The November WTI trades this morning around $71.90 and the Brent around $81.60.

The Euro recovered against the US dollar. The €/$ pair trades this morning around 1.1560.

Leave a Reply

Your email address will not be published. Required fields are marked *

UA-115977768-1