CHICAGO: Following are US trade expectations for the resumption of the grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CST (1430 GMT) on Wednesday.
NOTE: The US Department of Agriculture (USDA) is scheduled to release its monthly supply/demand reports along with US winter wheat plantings and quarterly grain stocks reports on Friday, Jan. 12.
WHEAT – Up 1 to 2 cents per bushel
Modestly higher on technical buying and short-covering ahead of the USDA’s reports on Friday. Analysts expect the government to show a drop in US winter wheat seedings compared to a year ago.
Rallies capped by strong competition for export business amid plentiful world wheat supplies.
CBOT March soft red winter wheat last traded up 1-1/4 cents at $4.33-1/2 per bushel. K.C. March hard red winter wheat was up 1-1/4 cents at $4.40-1/4, and MGEX March spring wheat was down 1/4 cent at $6.30-1/2.
CORN – Steady to up 1 cent per bushel
Nearby contracts hovering just above contract lows, supported by technical buying and positioning ahead of the USDA’s reports on Friday. Managed funds hold a large net short position in CBOT corn futures, leaving the market vulnerable to bouts of short-covering.
Chart resistance noted in the CBOT March contract at its 20-day moving average of $3.50.
CBOT March corn last traded up 3/4 cent at $3.49-3/4 per bushel.
SOYBEANS – Down 1 to 3 cents per bushel
Heading lower for a third straight session on technical selling ahead of USDA’s supply/demand reports on Friday and generally favorable crop weather in Brazil.
Analysts on average expect the USDA to raise its forecast of US 2017/18 soybean ending stocks, and raise its estimate of Brazil’s soybean crop.
Celeres, a consultancy, on Tuesday raised its forecast of Brazil’s soybean output to 111.8 million tonnes, up 1.9 percent from its previous estimate.
The USDA said private exporters sold 260,000 tonnes of US soybeans to unknown destinations, including 65,000 tonnes for delivery in the 2017/18 marketing year and 195,000 tonnes for 2018/19.
CBOT reported 21 deliveries against expiring January soybean contract, along with 99 January soymeal deliveries and 140 January soyoil deliveries.
CBOT March soybeans last traded down 2-1/4 cents at $9.61-1/2 per bushel.
Source: Brecorder.com
