USDA Report Leads to Decline in Grain and Soybean Futures
Following the USDA’s announcement of increased wheat stockpiles and raised corn production forecasts, grain and soybean futures saw a decline. Wheat futures dropped to $5.34 a bushel, while corn futures fell to $4.09¼ a bushel and soybean futures decreased to $10.48¼ a bushel. Speculators increased bearish positions in corn and soybeans, with money managers raising their bearish bets on soybeans.
Agricultural Market Sees Fluctuations in Commodity Prices
On Friday, May 17, 2024, the agricultural market experienced fluctuations in commodity prices, with corn and wheat prices declining while soybeans showed strength. Karl Setzer from Consus Ag Consulting highlighted the mixed futures trading, attributing the downward pressure on wheat prices to larger crop estimates and smaller Russian wheat losses. Corn prices were impacted by sluggish exports and increased planting, while soybeans were supported by spread trading and inventory damage in Brazil. Livestock and crude oil prices also saw movements, reflecting the dynamic nature of the agricultural market amidst weather challenges faced by farmers.
US Soybean Trade Group Urges Higher Tariffs on Chinese Used Cooking Oil
As President Joe Biden prepares for new tariffs on China, the National Oilseed Processors Association is advocating for higher levies on Chinese used cooking oil to protect American biofuels production. Concerns have arisen over imports from China potentially undercutting US crops. The White House has not commented on the potential tariffs, which would be part of broader US trade actions against Chinese goods.
Soybean Futures Drop as Brazilian Harvest Progresses
Soybean futures took a hit in overnight trading as the Brazilian harvest progresses, with the country’s production forecast remaining steady at 155 million metric tons. Despite expectations of a reduction due to adverse weather, exports are anticipated to rise to 103 million metric tons. In the U.S., rain forecasts may impact corn and soybean planting but could benefit soil moisture levels. Ethanol production saw a significant drop, averaging 954,000 barrels per day, the lowest level since January. Red meat and poultry stocks in cold storage saw a decline compared to the previous year, with red flag warnings issued in the southern Plains affecting agricultural activities.
Wheat Futures Drop on Favorable Conditions for U.S. Winter Crop
Wheat futures dropped due to favorable conditions for the U.S. winter crop, with significant rain in Oklahoma and Texas. Spring wheat and corn planting is underway, while soybean futures were lower as Brazil’s harvest continues. Offshore soybean and grain inspections were also down according to a USDA report.
Mixed Day for Commodities in the Market
On Monday, March 25, 2024, the market saw a mixed day for commodities, with soybeans closing up 16¢, while May corn and wheat closed mostly in the red. The Grain Market Insider newsletter by Stewart-Peterson Inc. noted that soybeans ended the day higher despite weakness in both corn and wheat. Prices were lower overnight but rallied into the close, with main support coming from higher soybean oil, aided by Malaysian palm oil. Additionally, Arlan Suderman, chief commodities economist for StoneX, highlighted the upcoming release of the quarterly grain stocks and planting intentions survey results by the USDA, known for their surprises, especially the stocks reports. Suderman also noted the transition of managed money away from massive short positions in the grain and oilseed complex, as well as the focus on weather risks and rising risks of reinflation.
Wheat Futures Rise Due to Concerns About French Crop Condition
Wheat futures rose in overnight trading due to concerns about French crop conditions and short covering. Cattle on feed in the U.S. also rose by 1% year over year, with record high placements. May delivery wheat futures reached $5.59 a bushel on the Chicago Board of Trade, while corn and soybean futures fell.
USDA Corn Futures Report
USDA’s outlook for domestic ending stockpiles came in above trade expectations, impacting corn, soybean, and wheat futures. Speculators increased net short positions on soybeans, while reducing bearish positions in corn and wheat.
Brazil’s Soybean Harvest Reaches 47.3% of Projected Area, Signaling Significant Progress
Brazil’s soybean harvest has reached 47.3% of the projected area, signaling significant progress in the country’s soybean production. The increased production could potentially impact supply and prices, influencing trading activities worldwide. Conab’s data provides valuable insights for agriculture buyers and sellers, offering essential information for decision-making. Signing up for the platform can provide access to comprehensive market data and analysis, catering to the needs of industry professionals and facilitating informed decision-making.
USDA Revises 2023/24 US Wheat Ending Stocks Estimate
The USDA has revised its 2023/24 US wheat ending stocks estimate and left the output forecast unchanged. Stay informed about market news, price data, forecasts, and analysis with a live demo to explore various capabilities including full coverage of the wheat, corn, soy, and barley markets, daily spot and forward prices, tender dashboard, export trade dashboard, crop forecast table, and a fully searchable news archive.