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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