Morning Briefing – US markets slightly lower this morning on Globex

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On November 9, 2018, Posted by , In Morning Briefing,Nos articles, With No Comments

US grain markets

The markets reacted to the WASDE report released in late afternoon. Corn found support in lower yield estimates while soybeans were penalized by lower exports. Wheat closed slightly lower with higher global stocks estimates.

The USDA also released its weekly export sales report.

Corn

The December contract closed 1c up at 373c. It trades this morning 2c lower.

The WASDE report :

The USDA lowered its US production estimates to 14.626b bushels (-152mb) and its yield estimates from 180.7 b/a to 178.9 b/a.

Final US stocks are seen down, from 1.1813bb to 1.736bb.

Final global stocks estimates almost doubled, from 159.36mT to 307.51mT after a revision of its stocks by the Chinese government.

Weekly export sales:

2018/2019 sales of 701.5kT were up 78% from a week earlier and 32% above the 4 weeks average.

Other news:

The Conab sees the Brazilian corn production up 12% from a year earlier.

APK-Inform sees Ukrainian exports up 19% from last year.

Soybeans

The January contract closed basically unchanged (-0.4c) at 879c. It trades this morning 3c lower.

The WASDE report :

The USDA lowered its US production estimates to 4.600b bushels (-90mb) and its yield estimates from 53.1 b/a to 52.1 b/a.

Final US stocks are seen up, from 855bb to 955bb, as a result of lower exports to China.

Weekly export sales:

2018/2019 sales of 388.4kT were down 2% from a week earlier but 16% above the 4 weeks average.

Other news:

The Conab sees the Brazilian soybeans production basically unchanged from last year.

Wheat

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

The WASDE report :

The USDA lowered its US final stocks estimates from 956m to 949m bushels. The agency rose its global stocks estimates to 266.71mT.

Weekly export sales:

2018/2019 sales of 661kT were up 14% from a week earlier and 47% above the 4 weeks average.

Other news:

APK-Inform sees the Ukrainian wheat exports down 11% from a year earlier.

Other markets

The main US stock indexes closed slightly lower. The S&P lost 0.25% after the FED meeting. Interest rates were left unchanged, but the FED will proceed with its monetary policy. The next rate hike is expected in December.

Crude oil prices resumed their decline. A higher supply and concerns about global growth weigh on the markets. Prices dropped 20% since early October. The December WTI trades this morning around $60.60 and the December Brent around $70.70.

The Dollar rebounded after the FED meeting. The €/$ pair trades this morning around 1.1340.

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