November 13: Bombs Away for Grain Prices

Soybean prices slump again, wheat prices wilt, and December corn slide toward $3.40. Here’s your daily recap of grain prices from the Chicago Board of Trade.

Lower Russian Wheat Prices Drag on Global Market

Let’s start our recap of grain prices in the wheat market.

December wheat prices dipped 7.25 cents to close the day a tick above $4.24.  The March contract slipped 5.75 cents and finished a tick above $4.43.

December Hard Red Wheat contracts fell 5.75 cents to finish the day at $4.275.

Spring wheat prices faces the greatest pressure. The December MGEX contract fell more than 2% on the day, dipping 14.25 cents.

What’s pulling prices lower? Several factors.

Among them first is the ongoing decline in Russian wheat export prices. Weakness in demand and a stronger U.S. dollar continue to weigh on Black Sea prices. Even though Russia is poised to export record wheat shipments, the weak ruble is furthering the downturn. It’s a story that we’ve told multiple times, but Russian exports are weighing down prices around the globe.

Other news affecting prices negatively include the smaller-than-expected wheat export figure reported by the USDA this morning and money managers’ increase in their net short position.

This afternoon, the USDA reported its weekly Crop Progress report.

The agency said that 95% of the winter wheat crop has been planted. That figure is in-line with the five-year average. In addition, the agency said that 84% of the crop is emerged, while 54% of the crop is rated Good-to-Excellent.

The latter figure is down from the 55% reported last week.

What’s better than selling your crop at a profit?
Selling it for a bigger profit.
Post on FarmLead and get access to 500 competitive buyers.

Soybeans Lead Grain Prices Lower

We saw November soybean prices fall to just above $9.63 on the day as markets continue to weight data from the November WASDE report. Among grain prices in Chicago, soybean results were the largest decliner.

That figure is 37 cents lower than prices hit the day after the release of the October WASDE report. The January contract was also off by double digits and fell below the 200-day moving average.

In addition to news of last week’s huge crop report, markets continue to weigh the uptick in export competition from South American producers and increasing rains in key planting regions across Brazil.

Finally, markets were little impressed by last week’s export figures. Though China has continued its buying spree, the U.S. only sold 76.7 million bushels last week. That number was in line with trade analysts’ expectations.

This afternoon, the USDA reported that the soybean harvest is 93% complete. That figure is two percentage points below the five-year average.

Corn Prices Again Slide

December corn prices continued to slump Monday.

December corn futures contracts shed 1.25 cents to close at $3.4225. The March 2018 contract slid 1.75 cents to close at $4.55.

Last week’s WASDE report recorded a record crop for the United States. The USDA reported a much larger average corn yield than trade analysts had expected. With the world awash in corn, markets were anxiously awaiting the release of today’s Crop Progress report.

Finally, the USDA said that the corn harvest is 83% complete. That is a 13-point gain from the previous week, but still eight percentage points below the five year average.

On Tap for Grain Prices Tuesday

Tomorrow, FarmLead will be making a major announcement.

We are about to unveil the only tool you will need moving forward to ensure that you can get the best price possible in your local markets. If you’re looking to sell your grain soon, this tool will give you an inside-edge in negotiations with buyers in your vacinity.

Be sure to sign up for the Breakfast Brief, right here.

In addition, if you’re looking to capture upside in the markets, be sure to post your grain and start negotiating with the hundreds of financially verified buyers on the FarmLead Marketplace.

You never know what buyers are looking for and how good of a price you can get unless you sign up today.

 

About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.

Most Recent Posts
June 1- Where Wheat Prices Go After May's Terrible Performance
June 01, 2020 Brennan Turner
Grain markets are mostly lower on increased U.S.-China trade tensions, while wheat prices are pulling back after being the best performer in the last week of trading for May.
October 4: Corn Prices Edge Higher With October WASDE in Focus
October 04, 2018 Garrett Baldwin
Corn prices ticked higher Thursday as traders and analysts began to speculate on next week’s release of the October WASDE report.
Pea Prices in 2020 Diverge as Farmers Look Up and Abroad
January 14, 2020 Brennan Turner
Pea prices are starting 2020 out on a bit of a divergent path, at least within the complex, as yellow pea prices drag lower while green pea prices soar.