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Commodity Market Report, 12th of June 2020

Agricultural Commodities were mixed on Thursday as USDA World Agricultural Supply and Demand Estimates (WASDE) report from USDA had enough supportive data to keep corn and soybean prices high on Thursday,

In weather updates, drier weather is finally in the forecast, with According to the latest 8-to-14-day outlook from NOAA, which predicts seasonally wet weather in the upper Midwest, while drier-than-normal conditions could persist farther south.

In energy news, Oil prices dropped on Thursday’s, after the data from the WORLD AGRICULTURAL SUPPLY AND DEMAND ESTIMATES (WASDE).

WTI futures closed Thursday’s session at 36.14 USD per barrel and currently trading at 37.04 USD at 13:00 GMT.

International Brent futures closed Thursday’s session at 38.31 USD per barrel and currently trading at 38.86 USD at 13:00 GMT.

 

Wheat

CBOT Wheat July futures prices rose to reach $4.99-1/4 on Thursday’s session after the USDA’s expectations that 2020/2021 global stocks will reach record levels

USDA had little supportive news for wheat prices on Thursday report, and most contracts stumbled 2 percent or lower immediately following the data dump. The agency’s estimates for 2019/2020 ending stocks moved up 4 million bushels to 983 million bushels,

A Reuters poll shows analysts think Russian wheat exports in 2020/2021 will rise 6 percent above the current marketing year to reach 1.304 billion bushels. Kazakhstan could reach a 17 percent growth year-over-year, with an expected 492.4 million bushels. Ukraine wheat exports, in contrast, are expected to fall 15 percent lower this marketing year, to 643 million bushels.

Preliminary volume estimates were for 174,735 CBOT contracts, moving 17% ahead of Wednesday’s final count of 148,827.

  

Corn

CBOT Corn July futures rose in this session and finished the session at $3.29-2/4, as a Drier weather forecast later this month lent additional support.

USDA reported its assessment for corn that supply and demand were changed from last month’s report after noting some increases to both beginning and ending stocks. The agency’s 45 million-bushel reduction for 2019/2020 corn production was more than offset by its 50 million-bushel reduction for ethanol production. Stocks bumped up to 2.103 billion bushels, which was mostly in line with the average trade guess of 2.105 billion bushels.

Preliminary volume estimates were for 497,323 contracts, tracking moderately higher than Wednesday’s final count of 433,804.

 

  

Soybean

CBOT Soybean July futures prices rose on Thursday’s session as USDA’s supply and demand data weren’t very supportive.

USDA moved 2019/2020 soybean ending stocks slightly higher on Thursday’s WASDE report, from 580 million bushels in May up to 585 million bushels in June – a reversal from analyst expectations, with the average trade, guess expecting it to tick lower to 577 million bushels.

Meanwhile, Private exporters reported to USDA the sale of 26.5 million bushels for delivery to China. Most of the total 24.1 million are for delivery in 2020/2021, with the remainder 2.3 million for delivery this marketing year, which ends August 31.

 

Preliminary volume estimates were for 229,666 contracts, moving slightly ahead of Wednesday’s final count of 213,527.

 

 

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