Morning Briefing – US markets slightly higher this morning on Globex

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On October 12, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

The WASDE report was rather positive for corn and soybeans. Production and final stocks estimates were below market expectations. Wheat also rebounded as the report came out but finally closed slightly lower.

The USDA will release this afternoon its weekly export sales report.

Corn

The December contract closed 6c up at 369c. It trades this morning 1c higher.

The USDA lowered its production estimates to 14.778b bushels, where analysts expected a higher number. US 2018/2019 ending stocks were estimated at 1.813b bushels. Final world stocks for 2017/2018 and 2018/2019 are seen slightly higher.

For this afternoon’s report, the market expects export sales between 1mT and 1.5mT.

Brazil announced that its 2018/2019 corn production may rise by 12.75%.

Sovecon expects Russian production to drop by 7.5%.

Ukrainian corn exports may rise by 16% compared to last year.

Soybeans

The November contract closed 6c up at 858c. It trades this morning 7c higher.

The USDA rose its production estimates to 4.690b bushels, where analysts expected a higher number. Final world stocks for 2017/2018 were seen lower and 2018/2019 higher.

For this afternoon’s report, the market expects export sales between 800kT and 1.3mT.

Brazil expects a slightly higher 2018/2019 soybeans production.

Wheat

The December contract closed 2c down at 508c. It trades this morning 2c higher.

The USDA rose its US 2018/2019 ending stocks estimates to 956k bushels. Analysts expected a higher number. Final world stocks are seen lower at 260.18m bushels.

For this afternoon’s report, the market expects export sales between 300kT and 600kT.

Brazil announced that its 2018/2019 corn production may rise by 12.75%.

Sovecon expects Russian wheat production to rise by 12%.

Ukrainian corn exports may drop by 11% from last year.

Other markets

The main US stock indexes closed again sharply lower. The S&P and the DJ lost over 2%. The shares are under pressure with rising bond yields.

Crude oil prices recover slightly. They dropped after the weekly API report showing much larger than expected US stocks (+9.7m barrels). The November WTI trades this morning around $71.70 and the December Brent around $81.10.

The Euro recovered further against the US dollar. The €/$ pair trades this morning around 1.1590.

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