Chicago Grains End Lower
13/09/16 -- Soycomplex: Beans closed sharply lower under pressure from yesterday's record bin-busting 50.6 bu/acre yield forecast from the USDA. A strong dollar didn't help today either. Tomorrow is last trading day for September futures, so some technicality could be in evidence. Old crop remains tight, but new crop is almost upon us. Those growers that don't need to sell for cash or space purposes at harvest time could be reluctant below $10, and even more so if we fall below $9/bu. There are plenty of question marks over the South American growing season ahead, as well as farmers' planting intentions with regards to beans on a falling market. Sep 16 Soybeans settled at $9.68 1/4, down 16 1/4 cents; Nov 16 Soybeans settled at $9.44, down 20 1/4 cents; Sep 16 Soybean Meal settled at $310.40, down $7.90; Sep 16 Soybean Oil settled at 31.55, down 76 points.
Corn: The market closed around 10 cents lower. Follow through pressure from a bearish WASDE report was a negative factor, as well as the strong dollar. Corn production in Brazil for 2017 was raised 2.5 MMT to 82.5 MMT in yesterday's report, a sharp 23% increase on this year's drought-reduced crop. Meanwhile, the USDA’s 2.384 billion bushel US carryover estimate, if realized, would be the largest carry-over since 1987/88, noted Benson Quinn. The US harvest is now underway, providing a bit more additional pressure to the market. The corn harvest is also moving along in the FSU, with Russia 6.4% complete at 938.5 TMT and Ukraine 3% done at 478 TMT. Warm and dry conditions in the latter may be stalling winter wheat planting but they will be beneficial for corn harvesting. Sep 16 Corn settled at $3.19 1/4, down 10 cents; Dec 16 Corn settled at $3.30, down 9 1/2 cents.
Wheat: The wheat market closed lower, in common with corn and beans. As the US spring wheat harvest nears an early completion, winter planting is underway. The French harvest continues to shrink, with the Ag Min there cutting their forecast from 29.1 MMT to 28.2 MMT, down from almost 41 MMT a year ago. Russia though appears to have more than enough wheat this year, with their harvest now standing at 69.8 MMT off 85% of the planned area. Planting for 2017 is also well advanced at 43% done. There's talk of Russia introducing a ban on Egyptian citrus imports, which could spark a trade war engulfing the purchase of Russian wheat - already in the doldrums over the new ergot zero tolerance rules. There's continued talk of dryness issues in Ukraine possibly having an adverse affect on winter wheat plantings there. Sep 16 CBOT Wheat settled at $3.74 3/4, down 8 1/2 cents; Sep 16 KCBT Wheat settled at $3.92 1/4, down 7 1/2 cents; Sep 16 MGEX Wheat settled at $4.91 3/4, down 8 cents.
