Chicago Grains Decline In Line With Falling Equities, Crude

Corn: The corn market ended with losses of the best part of 10 cents. As with beans, macro-economic worries weighed on corn, along with slumping crude oil prices as the US embrace shale gas production. The Ukraine Ag Ministry estimated this year's grain harvest at a record 64.4 MMT, saying that exports would exceed last season's 33 MMT, without giving an exact figure. Much of that will be corn, although these estimates look rather optimistic given the problems that they've had this year. Other, perhaps more realistic, trade estimates have Ukraine's grain crop at around 57-58 MMT, with exports in the region of 26-27 MMT. The Ukraine Ministry say that exports so far this season total just under 10 MMT. The Ukraine government said that they are in negotiations with Europe to obtain further permission to export corn to the bloc on a duty free basis. The existing 800 TMT corn quota has already been fully taken up. The Ukraine's said that they are hoping for the new quota period to commence on Nov 1, immediately after the old one expires. Russia said that it had harvested 7.6 MMT of corn so far this season, off 1.7 million hectares, or 62.3% of the planned area. They said that average yields this year are 4.59 MT/ha versus 5.2 MT/ha a year ago. There will be no weekly export sales figures tomorrow due to Monday's Columbus Day holiday, these will be released on Friday. Last night's US harvest progress figure of 24% from the USDA was in line with expectations, although well behind the norm. There is however talk of an extended period of dryness coming for much of the Corn Belt, which may allow for good advancement to be made. It has been shown in recent years that US farmers can harvest 25% of the entire corn crop in a week, given modern technology and equipment, if the weather is conducive. Dec 14 Corn closed at $3.47 1/2, down 9 1/2 cents; Mar 15 Corn closed at $3.60 1/2, down 9 1/2 cents.
Wheat: The wheat market closed mixed, down in Chicago and up a little in Kansas and Minneapolis. Ukraine said that it had exported 5.9 MMT of wheat so far this season. Rusagrotrans raised their estimate for Russian grain exports (most of which will be wheat) in October from 3.0 MMT to 3.3-3.4 MMT. That would be a modest decline from 3.75 MMT in September, but still a record for the month, beating the previous best October total of 2.88 MMT set in 2011. The President of the Brazilian Millers Association said that wheat imports from the US would decrease sharply in 2015, following record domestic production and a strong recovery in output in neighbouring Argentina, who get a preferential deal in exporting wheat to Brazil as they are part of the Mercosur trade bloc. Brazil imported 6.6 MMT of wheat in 2013, with around half of it coming from the US following poor harvests domestically and in Argentina. They've imported 4.6 MMT of wheat in the first nine months of 2014, with around 2 MMT of that total coming from the US. Pakistan said that they expect growers there to plant 8.91 million hectares of wheat this year, up from 8.83 million a year ago. Production will rise from 25 MMT to 26 MMT in 2015, the Ministry said. Planting takes place October/November, with harvesting April/May. Russia said that it's 2015 wheat harvest was complete on 22.9 million hectares, or 92.9% of plan, producing a crop of 60.4 MMT in bunker weight to date. Average yields are 2.64 MT/ha, up more than 12% from 2.35 MT/ha a year ago. The Russian Grain Union forecast the 2014 wheat crop at 60 MMT in clean weight. The Russian Ministry estimated winter grain plantings at 93.9% complete. Rain is now needed, and fortunately for them that's exactly what is in the forecast, with Agritel predicting the best significant rain even of the autumn in the coming days. Dec 14 CBOT Wheat closed at $5.06, down 3 1/4 cents; Dec 14 KCBT Wheat closed at $5.92, up 1 3/4 cents; Dec 14 MGEX Wheat closed at $5.64 3/4, up 1/2 cent.