CHICAGO, Illinois (Agriculture.com)--Profit-taking dropped corn and soybean prices, demand pushes up wheat Thursday.
The Dec corn futures settled 4 cents lower at $4.29 1/4. The Nov. soybean contract ended 18 1/2 cents lower at $10.12 1/4. The Dec. wheat futures settled 25 1/2 cents higher at $7.14 1/4. The Dec. soymeal futures contract closed $4.90 per short ton lower at $295.10, and Dec. soyoil down 97 points at $40.48.
(Adds government reductions in auction volumes, context, corn prices)
BEIJING (Dow Jones)--China's corn reserves are down sharply compared
with last year, making it more difficult for the government to control
corn prices, a senior grain industry executive told an industry
conference in comments posted Tuesday on a website owned by state
stockpiler Sinograin Corp.
Grain futures continued their ascent to higher territory as the market looks for falling global supplies and increased U.S. exports. However, at home the underlying cash markets continue to show weaker basis trends and we expect these trends to worsen as we approach the new-crop marketing year.
World wheat supplies and a battle for acreage in the U.S. become two issues the commodities market will stay focused on, folliowing this week’s USDA August Crops Report, analysts say.
In its report, the USDA lowered world wheat carryover from 187.1 million metric tons in July to 174.8 million metric tons. The sharp drop comes as a result of the Russian drought that is dropping that country's 2010 output significantly. In addition, the Russian Prime Minister announced Friday the country’s winter wheat sowings will be cut by one-third.
DJ UPDATE: Wheat Prices Climb; World Crop Cut Stokes Supply Fears
Tom Polansek - DJ - 3 mins ago
(Adds prices, analyst comments, news of Ukraine blocking some grain exports, and background on corn demand, in the third, seventh through ninth and 17th through 19th paragraphs.)
CHICAGO (Dow Jones)--Wheat prices climbed sharply as the latest official U.S. estimates of global output undercut previous predictions.
DJ Technical Special: Wheat Bulls Exhausted After Big Runup
Jim Wyckoff - DJ - 1 hr 2 mins ago
December soft red winter wheat futures at the Chicago Board of Trade late last week scored a fresh 22-month high of $8.68 a bushel. Prices have since backed off sharply to suggest the bulls have become exhausted and that a near-term market top is in place.
As supplies tighten, commodities may compete with each other for acreage. With the recent sharp rally in wheat prices due primarily to drought conditions in Europe and Russia, wheat futures have made a significant advance, and are looking to attract producers to plant more for 2011.
I get a lot of questions about pricing grain in the 'out years', 2011 and 2012.
In general, I have been cool to the idea. For one thing, I have not done it myself, so I cannot speak from experience. Another factor is that there is so much time between now and the time the crop is harvested that economic factors, such as input costs, can change.
This week's USDA Weekly Export Sales Report shows the effects of world grain production problems.
Wheat exports last week were 854,000 metric tons, up 61% from the four-week average and new crop sales for after June 1, 2011 were 572,000. New-crop year sales are unheard of this time of year, but long term wheat production and availability remain in question. Total sales were 1.426 m.m.t. with sales to every corner of the earth. Egypt was in for the second consecutive week after avoiding U.S. wheat the past season, as they bought heavily on Russian ports.