July 12: Wheat Prices Pop after July WASDE Report

The July WASDE report spilled from the halls of the USDA on Thursday. Wheat prices popped higher after the agency reported a year-over-year decline in global stocks. Soybean prices ticked higher despite the uptick in global stocks for the 2018/19 calendar.

Below is a visual recap of the July 2018 WASDE report.

Let’s take a look at what happened today at the Chicago Board of Trade.

Chicago Wheat Prices Kick Higher

In Chicago, SRW wheat prices for September added 12.75 cents to close the day at $4.845. The December contract added 10.75 cents to close just a tick above $5.01.

In Kansas City, the September HRW contract added 7.25 cents to close just above $4.76 per bushel. The December contract added 7 cents to close just above 5.06.

Total U.S. wheat production increased by 53 million bushels to 1.881 billion bushels. The bulk of the increase is due to spring wheat, which is pegged at 613.97 million bushels.

On the global front, the USDA projected a reduction in both the European Union and Russia. The news came the same day that Strategie Grains slashed its EU production fight by 7.5 MMT to hit 132.4 MMT.

In addition to the WASDE report, the USDA also reported weekly export numbers. The agency said that sales for the week came in at 136,400 MT. This figure was a 69% drop week-over-week.

Exports came in at 285,900 MT for the week. The agency said that the top five destinations were Taiwan (49,300 MT), the Philippines (41,800 MT), Guatemala (37,300 MT), Mexico (36,700 MT), and Japan (33,200 MT).

Soybean Prices Largely Flat

The August contract for soybeans added 0.75 cents to end the day just under $8.34. The September contract added a penny to close at $8.39 per bushel.

The small uptick came despite a bearish WASDE report for the sector.

The USDA did cut 2017/18 ending stocks down to 465 million bushels. That was a cut of 40 million bushels. 2018/19 ending stocks were hiked from 385 million bushels to 580 million bushels. The report took direct aim at the ongoing trade spat between the United States and China. We provided a quick recap right after the USDA released its report. But we also dug deeper into this report for our GrainCents subscriber.

Go here for a full recap of soybean ending stocks, exports and more from the July WASDE report.

Today, the USDA also said that net sales of soybeans fell 72% week-over-week. That figure for the week came in at 158,600 MT.

The agency also said that the US saw a 22% drop in exports to 733,600 MT.

The top five destinations included Egypt (271,000 MT), Indonesia (101,100 MT), Taiwan (87,600 MT), China (71,300 MT), and Mexico (62,800 MT).

Corn Prices Pop in Chicago

September corn prices added 5.75 cents to close under $3.46 per bushels. The December contract added 6 cents and finished the day just above $3.59.

The uptick came after the USDA cut old crop and new crop stocks. The agency said that Brazilian production will be lower than previously expected.

Go here for a full recap of corn production, exports and more from the July WASDE report.

Meanwhile, the USDA said that Export Sales on old crop corn came in lower than expected. The agency said that net sales came in 9% lower than the previous week at402,100 MT

The agency said exports came in at 1.396 MMT. That figure was an 8% drop from the previous week.

The top five destinations for American corn were Japan (294,600 MT), Mexico (276,000 MT), South Korea (198,100 MT), Saudi Arabia (110,000 MT), and Vietnam (83,000 MT).

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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.

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