Agricultural Commodities closed Wednesday’s session in the red territories as traders continue to wait for critical details related to the U.S.-China trade negotiations. Wheat, Corn, and Soybeans ended the session lower. In the economic news, The U.S. trade gap with the rest of the world jumped to a 10-year high of $621 billion last year, that is a setback to President Donald Trump's deficit reduction plan. Moreover, a former official at the Chinese commerce ministry told CNBC on Thursday that the U.S. and China are reaching a better mutual understanding of the trade issues. He continues saying “Within the last nine months, we had three rounds of consultations. In weather space, The National Oceanic and Atmospheric Administration (NOAA) reports that the U.S. has finished the wettest winter (December through February) on record after barely topping precipitation totals from 1997-98. Looking ahead, above-average precipitation and colder temperatures, on average, through March are expected. In the Energy Space, Oil prices surged on Thursday amid ongoing OPEC-led supply cuts and the U.S. sanctions against exporters Venezuela and Iran, although the increase in prices was limited by a record of crude oil output in the U.S. and rising commercial fuel inventories. International Brent futures were at $66.3 per barrel at 08:00 GMT, up 18 cents, or 0.27 percent from their last close. U.S. WTI crude oil futures were at $56.38 per barrel at 08:00 GMT, up 0.23 percent or 13 cents from their last settlement.
CBOT Wheat May futures ended Wednesday’s session lower, to settle at $4.50-1/4 bushel due to some technical selling and weighed down by worries over huge global supplies and sluggish U.S. exports. Furthermore, prices went down on today’s session and are currently trading at 4.48-3/4 per bushel at 08:00 GMT.
In Ukraine, the 2018/19 wheat exports have surpassed 466 million bushels as of March 6, trending slightly lower than last year but the country’s total grain exports are expected to top last year’s tally by 14.0 percent.
Moreover, Egypt’s 2019 wheat production is estimated to be at 132.3 million bushels, with the country’s harvest kicking off starting in April. If realized, that puts this year’s production 14 percent higher than its 2018 crop.
Preliminary volume estimates were at 99,039 CBOT contracts, a little bit higher than Tuesday's final count of 91,553.
CBOT Corn May futures ended Wednesday’s session lower pressured by some technical selling due to concerns over the U.S.-China trade negotiations and spillover weakness from other grain prices to close at $3.71-1/2 per bushel. Corn futures traded at $3.70-1/2 today at 08:00 GMT.
In Ukraine, the 2018/19 corn exports surged significantly above last year harvest to record 661 million bushels as of March 6. In other news, the U.S. ethanol production trended lower last week, with an average production of 1.024 barrels daily, versus 1.028 million barrels per day the week prior.
However, Production remained on the high end of the prior four-week average. In Russia, the Russian State statistics service reported that the country’s 2018 corn production totaled 448.8 million bushels, which is 13.6 percent lower than 2017.
Preliminary volume estimates were at 145,163 contracts, significantly lower than Tuesday’s final count of 211,899.
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