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Wheat Prices Cool in the Overnight

In the overnight session the dollar rallied back toward the top of the trading range helping the grains shed a few pennies going into the pause in trade.

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In the overnight session corn fell 1 ¾ cents, soybeans fell 1 cent and wheat backed off from yesterday’s gains by 4 ¾ cents. The dollar index, which fell yesterday, is now back trading near the highs on the daily chart, up over ½ a percent this morning.

Grain inspections yesterday showed that wheat under-performed expectations only recording that 273,055 metric tons left the country last week. Soybean also under-performed expectations reporting 1,849,221 metric tons were inspected for export compared to expectations between 2,400,000 and 2,700,000 metric tons. Corn was the only grain that recorded larger than expected volumes shipped for export with 743,769 metric tons inspected last week.

The wheat market rallied yesterday as some restrictive measures in Russia were placed on the market. Grain quality will be more closely monitored which is expected to drive up the cost of exporting grain and slow the physical movement as well. This is intended to help curb Russia’s red hot export pace which is 30% ahead of last year’s export pace. The market fears that Russia might move toward even more restrictive measures if grain continues to be exported at a rapid pace. Russia wants to ensure that domestic demand needs are met, which have grown stronger than normal due to their ban on EU agricultural products.

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