September 6: Wheat Futures Drop with September WASDE in Sight

Wheat futures were in the red again, falling more than 1% as markets prepare for the upcoming September WASDE report.

Corn prices and soybean prices found small gains as some bargain buyers stepped in to snap up available supply. Here’s your daily recap from the Chicago Board of Trade.

Wheat Futures Sink as September WASDE Approaches

December SRW wheat futures contracts fell 8 cents to close just under $5.14 per bushel. The March 2019 contract lost 7.5 cents and finished the day at $5.35

In Kansas City, December HRW wheat futures contracts fell 11.25 cents on the day. The December contract closed a tick under $5.17. The March 2019 contract closed at $5.39 per bushel after falling 11.75 cents on the day.

Spring wheat prices closed the day in the red as well.

The MGEX December contract lost 8.5 cents to close the day a tick under $5.72. The March contract lost 8.5 cents and ended the day at $5.875 per bushel.

Tomorrow, we’ll be receiving two key pieces of data. The Commitment of Traders will tell us what managed money is thinking about grain prices moving forward. Meanwhile, the USDA will release weekly export numbers.

Soybean Prices Find Small Gains

Soybean contracts found small gains on Thursday. The November 2018 contract added 1.25 cents to finish just above $8.39 per bushel. The January 2019 contract added 1.5 cents to end the day a tick above $8.52 per bushel.

Traders are preparing for next week’s critical WASDE report. Be sure to return to FarmLead.com/Insights for instant analysis on grain prices after the release of the September WASDE.

Ahead of the report, Informa Economics projected that U.S. soybean yields will average 52.9 bushels per acre. That number is 1.3 bushels higher than the August WASDE estimate.

Canola prices followed soybean prices higher Thursday.

The November 2018 canola contract added CAD $1.70 to end the day at CAD $498.30. The January contract shed CAD $1.00 to end at CAD $504.80 per tonne.

Today, a Stats Canada report showed that all stocks of canola for the period ending July 31 came in at 2.391 MMT.

That figure was about 78% higher than the July 2017 figure.

Corn Prices Edge Higher

December corn contracts added 1 cent on the day to close at $3.655. The March 2019 contract added 1 cent to finish a tick above $3.78 per bushel.

Today, the Energy Information Administration released its weekly update on U.S. ethanol production and inventory levels. The agency said that weekly production came in at 1.087 million barrels per day. This was a daily increase of 17,000 barrels from the previous week.

The agency said that ethanol stocks dropped 358,000 barrels to 22.703 million barrels.

With the WASDE in focus, we are starting to see estimates come in from different agencies and crop analysts. Today, Informa Economics said it expects the U.S. corn crop to see a yield of 178.8 bushels per acre. That figure is 0.4 bushels higher than the USDA August WASDE projection.

This morning, Brennan offered his first thoughts about the Plant 2019. An expected shift from soybean acres to corn acres is expected.

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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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