Thursday, August 10, 2017

"Corn, Soy, Wheat Prices Plunge on Buoyant US Crop Supply Hopes"

We will definitely be visiting NVIDIA but first:

Symbol Last Chg
Corn 371-0s-15-2
Soybeans 940-2s-33-0
Wheat 440-4s-19-0

From Agrimoney:

Corn, soy, wheat prices plunge on buoyant US crop supply hopes
Corn, soybean and wheat futures tumbled after US officials, in a much-anticipated briefing, pegged domestic supplies of all three crops above market expectations – with world wheat supplies supported too by a huge upgrade to Russia's harvest.

Corn futures for December tumbled 4.1% to $3.70 ½ a bushel in late deals in Chicago – their lowest level in 10 months.

Soybean futures for November stood down 3.4% at $9.39 ¾ a bushel, their weakest since late June.

Winter wheat futures for September slumped 3.8% to $4.42 ¾ a bushel in Chicago, setting a two month low.

On the Minneapolis exchange - which trades the spring wheat which has been particularly closely watched by investors thanks to dryness in major growing regions in the US and Canada – best-traded December futures stood down 3.4% at $7.20 ½ a bushel.

The declines followed crop estimates in the US Department of Agriculture's monthly Wasde report on world crop supplies and demand which reversed ideas of a drop in world soybean supplies in 2017-18, and lifted expectations for the rise in wheat inventories.

In corn, the estimate for US stocks at the close of 2017-18 was reduced, but by far less than investors had expected.

Corn resilience
Indeed, rather than cutting its estimate for the US corn yield by 2.5 bushels per acre, as investors had expected after a dry July for much of the Midwest, the USDA downgraded the forecast by a modest 1.2m bushels per acre, to 169.5 bushels per acre.

While South Dakota, Iowa, Minnesota, and Illinois "are forecast to have yields below a year ago… the projected yield for Indiana is unchanged relative to last year, while Nebraska and Ohio are forecast higher", the USDA said.

While the yield reduction translated into a harvest downgrade of some 100m bushels, the cut was offset in part by a drop in expectations for corn exports and for domestic feed use of the grain....MORE

Earlier: "The USDA's World Agricultural Supply/Demand Estimates Report Is Out; Grains Are Down

On the FinViz charts - do visit, they are very red today- the prices have come back a bit in late action but this summer really proves the point that ag commodities are for trading not for investing. Unless you're Quaker Oats and you're flogging the benefits of gruel or porridge.
As noted in yesterday's "Ag Commodities: Ahead of Tomorrow's USDA Supply/Demand Report, Small Upticks":
This month and next the reports can really shake things up if the specs get caught on the wrong side of a move....