CBOT wheat and corn futures went down last week

21.08.2018

WHEAT. Over the period under review (August 9-16), CBOT wheat futures turned downwards (-3.9%), reports UkrAgroConsult.

The market was pressured by the recent USDA WASDE report. Market operators expected a more considerable reduction of estimates of world wheat production and stocks. In particular, the forecast of wheat production in Australia and Canada was quite surprising, as USDA experts left the estimates unchanged despite a precipitation shortage in those countries. The prices were also pressured by the information on spring wheat condition improvement in the USA.

At the end of the reporting week, grain markets were supported by the information on possible negotiations between the USA and China. Moreover, the further price reduction was prevented by the recent publication of US wheat export data. During August 2-9, the contracting volume was the largest this season.

CORN. During the reporting week (August 9-16), CBOT corn futures went down (-1.8%).

The raised USDA estimate of corn production in the USA and growth of US dollar exchange rate was the most considerable bearish factor.

Given the current crop conditions, USDA experts raised the estimate of average US corn yields to a new all-time high of 11.2 MT/ha (11.08 MT/ha in 2017). As a result, corn production forecast increased by 9 MMT to 370.5 MMT (370.96 MMT in 2017).

The Buenos-Aires Grain Exchange raised their estimate of corn planted area for the 2018/19 crop in Argentina to the record large 5.8 Ml ha, which also pressured the CBOT prices.

More detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior as well as on crop conditions and progress in harvesting in the countries of Black Sea Region is available to subscribers for weekly market report "Black Sea Grain" by UkrAgroConsult.

 

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