What is our trading focus?
WHEATJUL20 - CBOT Wheat
CORNJUL20 - Corn
SOYBEANSJUL20 - Soybeans
Grain prices are generally trading softer following the monthly release yesterday of the World Agriculture Supply and Demand Estimates report (WASDE) from the US Department of Agriculture. This was the first report to include projections for ending stocks at the end of the new 2020-21 crop year which runs until August next year. Across the board another year of plenty supplies are being projected with only a deteriorating weather outlook over the coming months preventing another bumper harvest in the U.S. and around the world.
Corn: Supplies will rise to their highest in 33 years due to massive plantings and what is expected to be a record crop in the 2020/21 marketing year.
Soybeans: The USDA raised its fore forecast of 2019-20 soybean ending stocks to 580 million bushels, up from 480 million last month and above the highest expectations. For 2020-21 the ending stocks was projected to fall to 405 million bushels, below the average estimate.
Wheat: While lowering the projected 2020-21 U.S. ending stocks to 909 million bushels from 978 million this year, it was still well above expectations at 819 million. Adding further pressure to U.S. wheat prices was the a jump in global ending stocks to a record 310 million tons. A recovery in Russian and Australian productions thereby making it harder for U.S. farmers to compete for export orders, unless the dollar should weaken over the coming period.