Global prices for cereals and soya have fallen ahead of the USDA report
Global prices for major grains and oilseeds declined on August 11 ahead of the USDA report due on August 12. Wheat posted the steepest decline on the CBOT, with September futures falling 1.6% to $231.57/t. Corn declined by 0.34% to $171.95/t, while November soybean futures fell 0.91% to $429.43/t.
The wheat market remains under pressure as the US harvest progresses. As of August 9, 91% of the winter wheat crop had been harvested, while the spring wheat harvest reached 24%, ahead of the five-year average of 19%. At the same time, spring wheat conditions deteriorated, with 51% of the crop rated good to excellent. In the EU, soft wheat exports since the start of the season totaled just 1.01 mln tons as of August 9, compared with 2.36 mln tons a year earlier.
Corn futures also ended the session slightly lower. US crop conditions remained stable, with 61% rated good to excellent. Meanwhile, ANEC raised its forecast for Brazilian corn exports in August from 4.08 mln tons to 5.17 mln tons. EU corn imports since the start of the season reached 1.58 mln tons, up 25% year on year, amid expectations that the bloc’s domestic production will fall to 51.9 mln tons.
Soybean prices declined despite fresh US export sales. The USDA reported sales of 136 thsd tons of new-crop soybeans to China and 180 thsd tons of soybean meal to the Philippines. As of August 9, 62% of the US soybean crop was rated good to excellent, down 1 percentage point from the previous week. At the same time, ANEC raised its forecast for Brazilian soybean exports in August by 1.14 mln tons to 10.88 mln tons.
European markets also continued to decline. September wheat futures on Euronext MATIF fell 2.17% to €213.25/t ($246.22/t), while November corn declined 0.9% to €247.25/t ($285.47/t). The next direction for grain and oilseed markets will largely depend on the USDA’s updated production, consumption and stocks estimates in the August WASDE.
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