Wheat Futures Under Pressure After WASDE
Wheat for March delivery fell 1.8% to $5.42 a bushel on the Chicago Board of Trade on Tuesday, with traders selling off their wheat positions after the USDA's WASDE report showed higher inventories than anticipated.
Corn for March delivery fell 0.5% to $3.79 3/4 a bushel.
Soybeans for March delivery rose 0.1% to $8.84 3/4 a bushel.
USDA Projects Higher World Soybean Inventories -- Update
The U.S. Department of Agriculture said world inventories of soybeans are likely to grow as Brazil expects a record crop.
Global soybeans stockpiles are likely to total 98.9 million metric tons, up from 96.7 million tons projected last month, the USDA said in its monthly World Agricultural Supply and Demand Estimates report.
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European Milling Wheat Slips as Prices Fall in GASC Tender -- Market Talk
1756 GMT - Wheat prices slip in Europe as traders tracked Egypt's international tender, its third so far in 2020. Milling-wheat prices closed 0.1% lower at EUR192.25 a metric ton in Paris as the tender's lowest price came from Romania. Ameropa offered Egypt's General Authority for Supply Commodities 60,000 tons of Romanian wheat at $228.29 a ton on a free-on-board basis, according to Reuters. That would represent a small fall in prices since GASC's previous wheat tender, when it bought 180,000 tons of French wheat at $231.10 on a free-on-board basis, according to AgriCensus. Traders follow Egyptian tenders because Egypt is the world's largest importer of wheat. The US Department of Agriculture forecasts Egypt will import 12.4M tons of wheat this year. (email@example.com)
USDA Sees More Corn Used for Ethanol -- Market Talk
1254 ET - The USDA says that it expects 50 million more bushels of corn being used for ethanol production -- which traders may come to see as a bullish indicator for domestic corn consumption. The USDA says it came to this conclusion based on both its own data and "the robust pace of weekly ethanol production data as reported by the Energy Information Administration during the month of January." Even so, corn futures on the CBOT fell following the report, with the March contract now trading 0.5% lower. (firstname.lastname@example.org; @kirkmaltais)
Demand for US Corn Looks to Improve -- Market Talk
08:44 ET - Multiple signs in the current world corn market point to a better demand picture for US corn in 2020, says Todd Hubbs with the University of Illinois. According to Hubbs, recent improvements to corn export sales in the USDA's weekly export reports, combined with higher ethanol production figures from the EIA, are indicators of better year. Additionally, Brazil may have trouble with its second corn crop, which may direct new demand to US exports, Hubbs says. However, Hubbs' expectation of a better year is hinged on China following through with its obligations under the phase one trade agreement. Today's WASDE report from the USDA is unlikely to show any projections including bigger Chinese purchases. Corn futures on the CBOT are down 0.4% in pre-market trading. (email@example.com; @kirkmaltais)
Green Plains Expects Uplift From US-China Deal -- Market Talk
0859 ET - Green Plains saw a 21% drop in gallons of ethanol sold in 2019, hardly surprising considering the slide in US exports of the biofuel with China out of the game last year. The company is hopeful that the US-China phase one trade deal will reverse the slide. E15 availability estimated at more than 3,000 locations in 2020 is also likely to boost demand, Green Plains CEO Todd Becker said. (firstname.lastname@example.org)
Hog Futures Fall As US Production Jumps -- Market Talk
15:43 ET - Hog futures on the CME tumbled this afternoon, with the USDA's WASDE report showing that production of pork is expected to rise by over a billion pounds from last year -- and 240 million pounds versus last month's projection of 28.66 billion pounds. "It's the industry's clear cut decision to over produce that is killing this market," says Dennis Smith of Archer Financial Services. Hogs closed down 1.3% at 64.225 cents per pound, while live cattle finished 1.3% lower at $1.17175 per pound. (email@example.com; @kirkmaltais)