Negative price scenario for corn and wheat

The grain market reacted in a varied way to the disclosure of the supply report&(USDA) released on Oct. 9. Information was positive for soybean prices and bad for corn and wheat prices, according to an analysis by the US Department of Agriculture. DATAGRO Consulting.

On the trading floor, CBOT soybean prices rose slightly after the release, reflecting the higher-than-expected cut in US final stocks, and the lower-than-expected increase in world output for the 2018/19 crop, while the market was expecting larger increases. The slight increase in the Brazilian crop has softened support. At the closing of the soybean spot contract (May) prices ended up in stability.

For maize, the revisions of the information were negative for prices. Especially on account of the above-expected increase in US and world inventories. Prices were also impacted by the increase in harvests in Brazil and Argentina, which were higher than expected. On the day of the report the spot position closed steady.

For wheat, USDA information was also negative for prices in both the US and world stocks, leading to a sharp decline in the CBOT. On the day of the report the spot position rose and closed in a fall of US $ 5.85 cents / bushel.

Source: DATAGRO