Chicago Markets Post Modest Gains
09/01/17 -- Soycomplex: Beans settled higher, helped by strong weekly export inspections of 1.457 MMT. That was down 8.2% on last week, but more than 17% larger than the same period a year ago. The trade is positioning itself for a larger Brazilian, but lower Argentine crop than the USDA currently figures in the upcoming WASDE report. The trade expects the USDA to lower the Argentine bean crop 900 TMT to 56.1 MMT and raise Brazil 400 TMT to 102.4 MMT. A Bloomberg survey of analysts has the average guess for US soybean stocks as of December 1 at 2.953 billion bu, up 8.76% from a year earlier. Average US yields are estimated at 52.7 bu/ac and production at 4.37 billion bushels. Jan 17 Soybeans settled at $9.96 1/2, up 10 1/2 cents; Mar 17 Soybeans settled at $10.05 1/4, up 10 1/2 cents; Jan 17 Soybean Meal settled at $309.80, up $2.30; Jan 17 Soybean Oil settled at 35.27, up 50 points.
Corn: The market closed a couple of cents or so higher. Weekly export inspections of 876,562 MT were up 36% from the previous week and 59% larger than the same week a year ago. The USDA also reported an export sale of 112,500 MT of corn to for 2016/17 delivery to an unknown destination. The trade is anticipating A Brazilian corn production number of up 600 TMT to 87.1 MMT, with Argentina down 400 TMT from December to 36.1 MMT in the WASDE report. A Bloomberg survey of trade analysts has the average pre-report estimate for December 1 Corn Stocks in all positions at 12.323 billion bushels. Taiwan's MFG bought 65,000 MT of US/Brazilian/Argentine or South African corn for March/April shipment in a tender. Mar 17 Corn settled at $3.60, up 2 cents; May 17 Corn settled at $3.67, up 2 1/4 cents.
Wheat: Wheat finished firmer, helped by the USDA announcing a flash sale of 120,000 MT of HRS wheat for 2016/17 delivery to an unknown destination. Weekly export inspections of only 260,555 MT weren't impressive though. The trade is looking for US all wheat stocks to average 2.056 billion bu in the Quarterly Grain Stocks report due out on Thursday. Winter wheat plantings of only 34.139 million acres, down from 36.137 million last year and the lowest since 1970 lean supportive in the longer-term. Some are starting to fret over very cold temperatures in Southern Russia and Ukraine. Temperatures fell to -25 C near Moscow overnight. Mar 17 CBOT Wheat settled at $4.27 1/4, up 4 cents; Mar 17 KCBT Wheat settled at $4.38 1/2, up 5 cents; Mar 17 MGEX Wheat settled at $5.59 3/4, up 7 cents.
