The latest USDA crop monitoring report for the 2018/19 crop brought mixed information to major grain markets, but declining positively for soybeans and corn, according to DATAGRO’s weekly grain analyst , Flávio Roberto de França Júnior.
On the day the report was released [Oct. 11], the soybean spot contract closed at $ 6.00 cents / bushel on the Chicago stock market (Cbot), basically reflecting the lower than expected production number for the US crop , now estimated at 127.64 million tonnes.
The rise in prices was consolidated in the next trading session, closing the week very close to stability. The negative highlights, according to France Junior, were the increase in US stocks above expected [24.09 million tonnes] as well as in the world’s final stocks [110.04 million tonnes].
Corn
In the case of corn, DATAGRO’s grain analyst points out the reduction in US production [375.38 million tons], while it was expected to increase, and the increase less than expected in the inventories of the new season also in the US [ 46.05 million tonnes].
In addition, according to France Junior, new estimates of world inventories of old and new harvests [159.35 million tonnes] registered a rise and exceeded expectations.
On the day the report was released, the spot position closed at a high of US $ 6.50 cents, ending the week with appreciation of 1.5%.
Wheat
In wheat, DATAGRO’s grain analyst points out the main negative points, the increase in production in the US for the 2018/19 cycle, while the market expectation was the maintenance of the previous forecast, as well as the increase in the final US stocks of old and new crops.
As a positive factor, France Junior highlights the reduction of the world’s final stocks of the new season, while the market waited for elevation. On the day the report was released, the spot closed down by US $ 2.50 cents, ending the week with a 0.7% decline.
This text was translated by machine from Brazilian Portuguese.