Soybean futures posted solid declines on Monday, as traders continued to weigh a slew of USDA reports released on Friday. Corn drifted a bit lower while wheat was mixed.
The USDA cut its 2018-19 U.S. soybean ending stocks by 45 million bu from December to 910 million, while global ending stocks were hacked 8.6 million tonnes to 106.72 million, partially due to a 5-million tonne cut in expected production in Brazil. However, U.S. and global soybean supplies are still expected to remain historically high, as the U.S. and its No. 1 soybean buyer, China, remain locked in a trade spat. Further pressure came from improving weather in Brazil where the soybean harvest is now reported at more than one-quarter complete. March soybeans fell 9 ½ cents to $9.05 and new-crop November was down 8 cents at $9.49.
Some support for wheat came the USDA’s lower-than-expected estimate of 2019 U.S. winter wheat planted area, although the market continues to look for more evidence of improving export demand. This morning’s USDA export inspections report indicated that 562,307 tonnes of all U.S. wheat was exported in the week of Feb. 7. That was up 27% from the previous week and 12.5% larger than this time in 2018 but still not enough to impress traders. March Chicago wheat added a penny to $5.18 ¼, March Kansas City slipped a ½ cent to $4.93 ¾ and March Minneapolis gained 5 ¼ cents to $5.73 ¾.
Corn fell as the weekly USDA export inspections report showed 743,536 tonnes of corn was shipped in the week of Feb. 7. That was a drop of 17.5% from the week prior and 12.17% lower than the same week in 2018. March and new-crop December corn both fell 1 ½ cents to close at $3.72 ¾ and $3.97 ¾, respectively.
Live cattle and lean hog futures both ended higher today.
Source: DePutter Publishing Ltd.
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