Create a free Feed & Grain account to continue reading

Grains Continue to Sink Lower

Crude Oil also Sharply Lower

Kevin Blog Headshot Headshot

Grains continued to sink lower overnight as the weight of bigger crops continues to pressure the market. Outside markets saw crude oil and equity indices sharply lower while the US dollar turned higher.

USDA’s crop report on Monday did little to change the bearish sentiment gripping the market. Soybean production came in well above expectations, eclipsing a 4.21 billion bushel crop on a +50 bushel per acre yield. For corn, USDA was lower than their August estimate but not as low as the average analyst expectation.

The first report by USDA on corn harvest pegged the US crop at 5%, behind the 5-yr. avg. of 7%, which was also the avg. of trade expectations.Both corn and soybean condition ratings held firm on the week.

In international news, Australia on Monday raised its forecast for wheat production for the 2016/17 season by 14.6% to 28.08 MMT, up from a forecast in June for 24.51 MMT .The raised forecast is in line with a Reuters survey of 10 analysts and traders who said they were expecting an Australian wheat harvest of 28 million tonnes.

Energy prices slid, weighing on currencies of commodity-producing nations, after the International Energy Agency said an oil glut will last longer than initially estimated, persisting well into 2017.

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

Page 1 of 244
Next Page