The latest USDA report has brought mixed grain market information but has a negative bias for soybeans, corn and wheat, says DATAGRO’s weekly grain analyst Flávio Roberto de França Júnior.
“The changes on the previous report were important, resulting in significant adjustments in the pricing patterns of the Chicago Stock Exchange (CBOT) futures market,” says França Júnior.
Soy
The analyst points out that on the day of the report [September 12], soybeans fell at the moment of disclosure, but ended up closing higher due to rumors of resumption of US-China talks. “However, the increase was canceled in the following two trading sessions, closing the week with a drop of 1.3%.” France Junior points out as negative points, the increase in the projection of production [127.73 million tons] and inventories [23 mi tons] of the new US crop, and world stocks of the new cycle [108.26 million tons].
Corn
In corn, the analyst points out as negative points, the increase in production [376.62 million tons] and inventories [45.06 million tons] of the new US crop, in addition to the world stocks of the old crop [194.15 million tons ] and new [157.03 million tons], surpassing market expectations. “On the day of the report, the spot position closed down by $ 13.75 cents. But, also retreating a bit more in the next trading session, closing the week in fall of 4.9%. ”
Wheat
In wheat, France Junior emphasizes the maintenance of 2018/19 production in the USA [51.08 million tons], as the market was expected to fall, and increase in the final global stocks of the old crop [274.36 million tons] and new [261.29 mi tones]. “On a positive note, the maintenance of the final stocks of the new season in the US [29.95 million tons], while waiting for elevation. The spot position closed at a very strong fall of US $ 12.00 cents / bushel, closing the week with a decline of 1.3%. ”
This text was translated by machine from Brazilian Portuguese.