CHICAGO: Following are US trade expectations for the resumption of the grain and soy complex trading at the Chicago Board of Trade (CBOT) at 8:30 a.m. CST (1430 GMT) on Thursday.
NOTE: Trade awaits monthly supply/demand reports due from the US Department of Agriculture at 11 a.m. CST (1700 GMT).
WHEAT – Steady to up 1 cent per bushel
Fractionally higher, awaiting direction from USDA’s supply/demand reports. Larger-than-expected weekly US export sales may lend support, but ample global wheat supplies, including a big Russian harvest, may cap rallies.
The USDA reported export sales of US wheat in the latest week at 781,800 tonnes, above a range of trade estimates for 350,000 to 550,000 tonnes.
Russia’s Sovecon agriculture consultancy raised its forecast for Russia’s 2017 wheat crop to 83.9 million tonnes, from 82.9 million previously.
Brazil has abandoned plans to allow a 750,000-tonne quota to import tariff-free wheat from outside the South American trade bloc Mercosur, the Argentine government said Thursday.
CBOT December soft red winter wheat last traded up 1/2 cent at $4.27-1/4 per bushel, K.C. December hard red winter wheat was up 1/4 cent at $4.27-3/4, and MGEX December spring wheat was up 11 cents at $6.54-1/2.
CORN – Steady to up 1 cent per bushel
Steady to firm as traders adjust positions ahead of the USDA’s supply/demand reports, in which analysts expect the government to raise its US 2017 corn yield and production estimates. Larger-than-expected weekly corn export sales may lent support.
The USDA reported export sales of US corn in the latest week at 2.939 million tonnes (old and new crop years combined), topping a range of trade expectations for 1.7 million to 2.3 million tonnes.
Brazilian government statics agency Conab projected the country’s 2017/18 total corn harvest at 91.6 million to 93.1 million tonnes.
China will remove the value-added tax on imports of corn-based distillers dried grains (DDGS), the foreign ministry said in a statement, a move set to boost purchases from the United States.
CBOT December corn last traded up 1/2 cent at $3.48-3/4 per bushel.
SOYBEANS – Up 1 to 2 cents per bushel
Heading higher for a fourth straight session ahead of the USDA’s monthly supply/demand reports, in which analysts expect the government to lower its US 2017 soybean yield and production estimates. The CBOT January soybean contract reached $10.03 a bushel in early moves, its highest since Oct. 20.
The USDA reported export sales of US soybeans in the latest week at 1.161 million tonnes (old and new crop years combined), below a range of trade expectations for 1.3 million to 1.850 million.
Brazil’s government statics agency Conab projected the country’s 2017/18 soybean crop at 106.4 million to 108.6 million tonnes.
China increased its forecast for 2017/18 soybean imports to 95.97 million tonnes, from a previous forecast of 94.5 million, boosted by strong crushing demand.
China is taking longer to issue safety certificates for cargoes of genetically modified (GMO) soybeans, in a move that could dent demand for purchases in coming months, four trade sources said.
Chinese importers signed two letters of intent to purchase 12 million tonnes of US soybeans in the 2017/18 marketing year, part of a series of trade deals announced during the visit of US President Donald Trump to Beijing.
The CME Group reported 133 deliveries against CBOT November soybean futures.
CBOT January soybeans last traded up 1-1/2 cents at $10.00 per bushel.
Source: Brecorder.com
