Grains mixed on WASDE report

Agricultural Commodities prices were mixed on Tuesday’s session as the World Agricultural Supply and Demand Estimates (WASDE) report didn’t have a lot of supportive data for grain prices.

In weather news, rounds of wet weather are expected for the central U.S. some areas are expecting additional rainfall between Tuesday and Friday according to the latest 72-hour cumulative precipitation map from NOAA. Next week, the agency predicts seasonally warm weather with average rainfall between May 18 and 24, according to its latest 8-to-14-day outlook.

In energy space, Oil prices were slightly higher on Tuesday’s session, prices rose after Saudi Arabia pledged to deepen production cuts in June in a bid to help drain the glut in the global market that has built up as the coronavirus pandemic crushed fuel demand.

WTI futures for June ended Tuesday’s session at 25.36 USD per barrel and is currently trading at 25.80 USD per barrel at 12:00 GMT.

International Brent futures for July ended Tuesday’s session at 29.44 USD per barrel and currently trading at 29.99 USD per barrel at 12:00 GMT.

 

Wheat

CBOT Wheat July futures prices fell to 5.13-2/4 USD per Bushel on Tuesday’s session, on a round of technical maneuvering with bearish supply and demand data, Wheat currently trading at 5.10-3/4 USD Per bushel at 12:00 GMT.

WASDE analysis yesterday expects lower exports and reduced stocks. Production is expected to drop 3 percent from a year ago to 1.866 billion bushels. USDA’s all-wheat yield estimates are for 49.5 bushels per acre, which would be 2.2 bpa lower than last year’s harvest.

 

In plantation news, This year’s spring wheat crop is now 42percent  planted, up from 29 percent a week ago. It’s also an improvement from 2019’s pace of 38 percent but still well behind the prior five-year average of 63percnet.

In export, inspections tumbled 42 percent week-over-week to land at 12.5 million bushels. Lower than analyst's expectations that ranged between 14.7 million and 23.9 million bushels.

Preliminary volume estimates were for 99,744 CBOT contracts, ahead of Monday’s final count of 87,846.

 

Corn

CBOT Corn July futures prices rose to 3.22-1/4 USD per bushel on Tuesday’s session, on a mixed bag of WASDE data, corn is currently trading at 3.20-2/4 USD per bushel at 12:00 GMT.

In WASDE report outlooks for corn assumes a record-high production and domestic use, with rising exports. The net result will still be larger ending stocks, according to the agency. USDA also assumes a return to trendline yields, which are tracking at 178.5 bushels per acre this year. That could lead to an unprecedented production of 16.0 billion bushels this fall.

Corn export notched another 52.5 million bushels last week. That was down slightly from the prior week’s tally but bested all trade guesses, which ranged between 35.4 million and 47.2 million bushels.

Preliminary volume estimates were for 325,055 contracts, doubling Monday’s final count of 168,758.

Soybean

CBOT Soybean July futures prices edged lower to $8.52-2/4 on Tuesday pressured by bearish WASDE data, although a large sale to China reported to China helped limit losses.

Regarding the WASDE report, expectations for 2020/21 are for higher supplies, crush, exports, and lower ending stocks from the prior year. The agency projects a 2020 soybean crop that’s 568 million bushels larger than last year’s harvest, reaching 4.125 billion bushels, based on increased harvest area and assuming trendline yields. Click here for our exclusive analysis of today’s report.

In exports, inspections climbed 30 percent from a week ago to reach 18.2 million bushels. In line with trade estimates, which ranged between 12.9 million and 25.7 million bushels.

Preliminary volume estimates were for 164,799 contracts, moving slightly above Monday’s final count of 151,356.

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