Chicago Board of Trade Wheat, corn, and soybean futures fell on Tuesday, with investors shrugging off bigger-than-expected declines in U.S. crop ratings to focus on forecasts for better weather
The latest 6-10-day and the 8-14-day outlooks have cool and dry conditions for the Midwest. Which may be welcomed by farmers in eastern Iowa and northern Illinois, where there has been too much rain.
The National Weather Service’s 30-day outlook released last week favors above-normal temperatures in August for most of the country.
Exports – USDA, Reuters:
• Egypt bought 420,000 metric tons of wheat from Russia, Ukraine nd Romania. U.S. hard red winter wheat was offered but it was not accepted probably due to its higher price.
• Jordan re-tendered for 100,000 metric tons of wheat after not making a purchase in its previous tender. The current tender closes on July 26.
• Iraq tenders to buy 50,000 metric tons of wheat from the U.S., Canada or Australia. The tender closes on July 31, with offers remaining valid until August 6.
• Bangladesh issued two buying tenders of 50,000 metric tons each of wheat. One tender closes July 26, the other August 6.
Oil prices firmed on Wednesday, holding near eight-week highs, as a fall in U.S. inventories bolstered expectations that the long-oversupplied market was moving toward balance.
Brent crude futures LCOc1 rose 30 cents to $50.50 a barrel by 0959 GMT, after rallying more than 3 percent on Tuesday.
U.S. West Texas Intermediate futures CLc1 climbed 40 cents to $48.29 a barrel.
Chicago board of trade Wheat September closed at 473.00 down 3 percent on Tuesday.
The market has come to terms with the fact the spring wheat is not going to be very good and is very comfortable with the weather premium.
Despite fears that dry weather will crimp production of U.S. spring wheat, and Chicago wheat had fallen for nine of the last 11 sessions, also U.S. wheat was seen as too pricey for the export market.
Wheat faced additional pressure from early findings from the Wheat Quality Council's tour of North Dakota, the top production state for spring wheat. Field surveys from the southeastern part of the state showed yield prospects that were better than expected
Chicago board of trade corn September fell 2.2 percent to 3.69 a bushel, near the session low of 3.68 a bushel - the lowest since June 30. On forecasts for rain and cool temperatures that will support crop development in the U.S. Midwest,
USDA said the corn crop was 62 percent good to excellent as of July 23, one percentage point worse than market forecasts.
Chicago board of trade Soybean September fell 26 cents closed on 985.50 down 2.5 %
The U.S. Agriculture Department said on Monday afternoon that 57 percent of the U.S. soybean crop was in good to excellent condition, down from 61 percent last week. Analysts had expected a reading of 60 percent.
Pivot Point: 999.42
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