Soybean prices found additional gains Wednesday. Prices ticked higher as traders began to assess market expectations for this Friday’s WASDE report.
Meanwhile, wheat prices pushed higher in Chicago, Kansas City, and Minneapolis. Corn prices found small gains as well thanks to ongoing concerns about drier weather in the weeks ahead.
Here’s what else you need to know from the Chicago Board of Trade.
Soybean Prices Push Higher
The September soybean contract added 4.5 cents on the day to close just shy of $9.00 per bushel. The November contract added 4.75 cents to close the day at $9.105.
Traders are looking a bit more bullish on U.S. beans after various reports suggested that Chinese buyers will be returning to American shores soon. Despite tariffs and repeated efforts to cut domestic soybean usage, China will still maintain a deficit.
Oil World analysts projected upcoming purchases of 15 MMT of U.S. beans from October 2018 to March 2019 thanks largely to the lack of supply available in South America.
September Corn Prices Look for Support
The September corn contract added 0.5 cents on the day to close a tick above $3.71. December corn contracts closed at $3.85 after a 0.5 cent uptick Wednesday.
On Wednesday, the Energy Information Administration reported weekly ethanol production numbers. The EIA said that 1.1 million barrels of ethanol were produced per day, a figure that is the highest level of output since December 2017.
Tomorrow, markets will be keeping a close eye on U.S. corn exports. Markets are interested to learn just how much U.S. corn will be shipped to Europe while the continent continues to roast.
The old crop sales estimates fall between a range of 300,000 MT to 600,000 MT. The new crop estimates range between 400,000 and 900,000 MT.
Wheat Prices Still Whipping Higher
In Chicago, September SRW contracts added 1.75 cents to hit $5.70. The December SRW contract gained 1.25 cents to finish just above $5.91.
In Kansas City, HRW contracts for September added 4.75 cents to end the day a tick above $5.84. The December contract added 3.5 cents to close just under $6.11.
Traders are paying close attention to market expectations for the August WASDE report. The key number to watch is on U.S. wheat ending stocks. An expected downturn in production is pushing trade estimates down to 967.4 million bushels. That figure would be 18 million fewer bushels than the July estimate.
In Minneapolis, September spring wheat prices added 5 cents to close just under $6.33. The December MGEX spring wheat contract gained 4 cents and ended the day a tick under $6.49 per bushel.
Wheat prices got a bump across the board thanks to revisions to production out of Europe. The association of German farm cooperatives DRV is expecting that Germany’s total grain harvest will fall to its lowest levels in 24 years. Widespread drought and extreme temperatures have created weather conditions not recorded since 1881.
The group projected that the country’s 2018 winter wheat crop will hit 19.2 MMT, a figure that represents about a 20% drop from the previous year.
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