Grains moved lower overnight with wheat leading the complex lower while losses in corn and beans were more muted. In outside markets, crude oil moved higher as did the US dollar.
China has increased punitive tariffs on imports of a US DDGs from levels first proposed last year. In a final ruling, the Commerce Ministry said on Wednesday that anti-dumping duties will range from 42.2 percent to 53.7 percent, up from 33.8 percent in its preliminary decision in September. Anti-subsidy tariffs will range from 11.2 percent to 12 percent, up from 10 percent to 10.7 percent.
Markets are mostly in a wait-and-see stance ahead of tomorrow’s flurry of new crop estimates. Quarterly stocks will be a key report to watch with USDA factoring in heavy feed use for wheat and corn in their demand estimates. USDA has a 9% increase in corn used for feed meanwhile cattle on feed was flat for the last quarter compared to the previous year, while hogs & poultry were up only 3% year on year.
Dry conditions are in the cards for Argentina over the next few days before widespread rains return the middle of next week. Slight improvement in wettest 1/3 of Arg. corn/soy next 10 days, but very wet 11-30 day suggests ongoing concerns. In Brazil, next 10 days will bring rains to help ease corn/soy stress in Northeast.
Oil rose on Wednesday, lifted by reports of Saudi supply cuts to Asia, but gains were capped by a lack of detail about the reductions and because of signs of rising supplies from other producers. EIA crude stocks data is out later this morning with traders looking for a 1.1 million barrel build from last week.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)
