Grains swung back into positive territory overnight following Tuesday’s sharp selloff. Crude oil catapulted higher overnight gaining $3 a barrel on news OPEC would cut production.
USDA announces a sale of 123,000 MT of soybeans to China.
Palm oil was up sharply overnight but China soybeans and soymeal were off following the US lower from Tuesday. Crush margins and hog margins in China, but there is signs that they are starting to move to South America for supplies.
In the long-term China's grain production will fall by 15 MMT, or about 2.5 percent, in the five years to 2020, as the government withdraws severely polluted or degraded farmland for rehabilitation, a state planner official said on Wednesday. Under the proposal, some five million hectares of land - about four percent of the country's total arable land - will be taken out of production and either rehabilitated or turned over to forest or grasslands,
On Tuesday, USDA released their long-term forecasts for agriculture. Looking at their 2017 acreage numbers, call for a big drop of 4.5 million acres in corn and soy acres up only 1.8. Traders expect a much bigger swing high in beans and a less dramatic drop in corn. Yesterday was FND-eve, sending longs exiting heavily in Dec corn and wheat which contributed to widening of spreads to March and a sharp plunge in flat price.
Crude oil got a jolt as top oil producer Saudi Arabia said a deal was close despite some loose ends. Iran, which is considered crucial to a breakthrough because its output has been rising after western sanctions were lifted, said it was also "optimistic".
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