Soybean and wheat prices ticked lower Tuesday as markets monitored ongoing trade talk between the United States and China. In a busy week of USDA data, markets are eyeing this week’s acreage report as a crucial factor for grain prices heading forward.
Let’s take a look at the prices at the Chicago Board of Trade.
Soybean Prices Slide Again
The August contract shed 7.25 cents to end the day just under $8.73. The November contract dropped 8.25 cents to end the day just above $8.87 per bushel.
We’re starting to look at trade estimates for this Friday’s Planted Acreage report. Analysts project that total soybean acreage will come at 89.691 million for 2018. If they are correct, that would be a jump of about 709,000 acres from the March estimate. Still, it would be about 450,000 fewer acres than what was measured last year.
Wheat Prices Continue to Retreat
The September SRW contract shed 6.5 cents to end the day at $4.84 per bushel. The December contract dropped 7 cents to end the day at $5.015.
HRW September contracts lost 12 cents to close the day at $4.755. The December contract decreased by 11.75 cents to end the day at $4.995.
Spring wheat prices for September slipped 5.5 cents to end the day just under $5.46. December contracts dropped 5 cents to end the day at $5.62 per bushel.
There was good news for Canadian farmers today. South Korea has removed its suspension of Canadian wheat imports after recent GMO contamination concerns. In our GrainCents coverage last week, we discussed how this would affect North American wheat prices. South Korea lifted its suspension much sooner than most analysts had expected.
Corn Prices Find Small Gains
Corn prices received a small bump thanks to cuts in expectations for Brazil’s corn crop. Agroconsult slashed its estimate for the second crop in Brazil from 57 MMT to 55.2 MMT.
Consequently, September corn contracts added 1.25 cents to end the day just under $3.61 per bushel, and December corn contracts gained a penny to close just above $3.73.
We’re getting ready for a critical acreage report on Friday. Analysts project that total U.S. corn acres will come in at 88.562 million. That would be about 536,000 acres higher than the March Intentions estimate. However, it would still be approximately 1.65 million fewer acres than last year. Stay tuned for our analysis of how the markets reacted to these updated acreage estimates.
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