US farm markets were mixed yesterday, after losses in Monday’s session.
Corn prices continued to fade shading another 0.88%.
Soybeans tacked on double-digit gains, in contrast, gaining 0,91%.
Wheat prices, on their part, landed in the red, with most contracts losing between 0.75% and 1.5%.
On macro markets, oil prices climbed more than 1% on this morning, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week, highlighting a tight supply and a demand improves.
Thus U.S. West Texas Intermediate (WTI) crude futures rose 89 cents, or 1.3%, to $71.38 a barrel at 05:16 GMT, adding to a 35 cent gain from Tuesday.
Brent crude futures climbed 88 cents, or 1.2%, to $75.24 a barrel, after gaining 44 cents on Tuesday.
Oil market’s was come under pressure on Monday on broad market jitters over the possible default of Chinese property developer China Evergrande Group.
On the financial side, overnight on Wall Street the S&P 500 fared little worse than flat, to sit about 4% below a record peak made early in the month.
The Dow also was little-changed after facing steep cuts on Monday session, dipping 50 points lower to 33,919 by the close.
Some analysts are comparing the situation to the Lehman Brothers implosion of 2008.
However, stocks found support and U.S. futures lifted in relief on Wednesday after China Evergrande said it would pay some bond interest due on Thursday, allaying fears of an imminent and messy collapse.
Thus, even if markets in Taiwan and China reopened lower after a two-day break, but were soon paring losses as the payment promise buoyed the mood.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3% lower mid-morning.
Japan’s Nikkei fell 0.6%, while Australian shares rose 0.7%.
Hong Kong markets were closed for a holiday.
On the other hand most analysts think the Fed will not go into detail about its tapering plans but say risks lie in board members’ “dot plot” of rates projections.
Coming back on grains market, harvest pressure and rising quality ratings pushed corn prices lower.
Indeed, corn and soybean harvests are now well underway across the country.
Except for some scattered spots, the forecast is largely warm and dry and should encourage a quick harvest.
However, there are some early reports of yields not hitting expectations, and disease pressures have been noted, but there isn’t enough data to support a trend yet.
Soybeans prices on their part, tacked on double-digit gains, as some bargain buyers entering the fray after prices slumped to a three-month low on Monday.
Wheat prices sputtered in a somewhat choppy session, with most contracts losing double digits by the close after a round of technical selling, particularly under the effect of corn harvesting pressure.
In this context, corn basis bids showed plenty of variability, moving as much as 22 cents higher at a Nebraska elevator while tumbling as much as 55 cents lower at a Nebraska processor.
Soybean basis bids were mixed at four Midwestern processors, moving as much as 10 cents in either direction.
While bids held steady at most other locations across the central U.S..
From South America, Brazil’s soybean exports remained robust, corn to remain subdued.
Meantime, Brazilian agricultural consultancy AgRural pegged soybean plantings there at 0.5% complete.
It is estimated that 22% of the full-season corn has been planted, which is just 1% behind last year’s pace.
Moisture conditions are better than a year ago, so germination and emergence have been good.
The president of the Brazilian Corn Producers Association is projecting a crop of 32 MMT, which would be an increase of 7 million from last year.
In Argentina, the corn planting pace is a bit slower.
According to the Buenos Aires Grain Exchange, just over 2% of the crop is in the ground, compared with 6% a year ago.
Meantime, Argentinian government has signed a new deal with a Belgian firm to dredge the Parana River over the next three months.
This waterway is key for transporting grains for export.
The river is experiencing its lowest levels in nearly eight decades.
According to Argentina’s Ministry of Agriculture, the country has already exported 30 million tonnes of soybeans from its harvest estimated at 43.1 million tonnes according to the Buenos Aires Stock Exchange.
In corn, 40.3 million tonnes have already been sold out of a harvest estimated at 50.5 million tonnes.
In wheat, 6.7 million tonnes would have been sold out of a harvest estimated at 19.2 million tonnes.
On the other hand Argentine government applies to extend export duty scheme to end-2024.
Argentine August soy crush fell 7%, and was unable to meet expectations.
On European market, Euronext evolved in dispersed order Tuesday evening, divided between the great tension of the rapeseed market and the American pressure on the grain prices.
Rapeseed indeed, continued to grow, posting its highest level of the year.
Meantime, per the latest data from the European Commission, EU corn imports during the 2021/22 marketing year are down 18% from a year ago, with 3.141.149 t through September 19.
European Union soybean imports during the 2021/22 marketing year continue to moderately trail last year’s pace, reaching 2.861.304 t through September 19.
EU soymeal and canola imports are also trending moderately lower year-over-year so far.
Soybean meal imports fell by half, total at 3.1m mt.
Rapeseed imports at European level stand at 944,483 t on September 19 against 1.52 million tonnes last year to date.
European Union soft wheat exports during the 2021/22 marketing year have reached 6.530.558 t through September 19, a year-over-year increase of 43%.
EU barley exports are also trending 18% above last year’s pace, with 2.366.626 t.
These figures is all the more notable as French data has been missing from European statistics for several weeks.
From the Black Sea basin, according to the Ministry of Agriculture in Ukraine, 1.32 million hectares of winter cereals have so far been sown, ie 17% of the expected area.
In rapeseed, 1.03 million hectares would be sown, or 86% of the total surface.
The current cropping conditions in Ukraine are satisfactory.
In Ukraine, prices are progressing on close deliveries while in the distance prices varied little yesterday.
In corn, Ukraine remains a key player on the European continent with an export potential of at least 30 million tonnes this year.
Conversely, yesterday there was a slight decline in wheat prices in Russia, maybe as SovEcon raised its estimate of the Russian wheat harvest by 200 kt this year, to 74.6 Mt, citing good yields coming out of Siberia.
Also the Kazakh government has increased their official total grains estimate from 15.3Mt to 16Mt, similar to some of the recent increases in private Russian estimates as spring wheat harvest wraps up there.
From Australia, Aussie local markets remained softer yet again yesterday as the global boards slid.
Bids in general were back a couple of bucks but on quiet trading.
The trade continues to look towards the new season harvest.
Early cutting is happening up north.
Some yield ideas have started to slip after recent weather stress.
Internationally, Turkey’s TMO buys 260k feed barley for Oct shipment in a tender.
Philippines importers return to tender for feed wheat, barley.
Japan is purchasing just over 113,000 t of milling wheat from the USA or Canada. Of the total, 72% is expected to be sourced from the U.S.
The grain is for arrival by the end of December.
We wish you a good day.
