Posted on November, 9, 2022 at 01:41 am
Chicago Board of Trade grain and soybean futures eased on Tuesday ahead of the release of widely followed U.S. government crop forecasts on Wednesday, and as traders assessed demand risks in China, the world's top soybean importer.
The wheat market also grappled with Black Sea supply prospects as Ukraine sought to expand a grain deal allowing exports from Black Sea ports.
The most-active CBOT wheat contract was down 17-1/4 cents at $8.28-1/2 a bushel around the close of trading. Corn fell 9 cents to $6.66-3/4 a bushel and touched its lowest price since Sept. 29. Soybeans, meanwhile, were 3-1/4 cents lower at $14.47 a bushel, after rising on Monday to their highest price since Sept. 22.
Traders adjusted positions ahead of the U.S. Department of Agriculture's (USDA) Nov. 9 supply and demand forecasts. The average of estimates for the U.S. corn and soybean yield among analysts polled by Reuters was unchanged from the USDA's October figures. However, analysts expect the USDA to raise its estimates for U.S. 2022/23 wheat, corn and soybean ending stocks from last month, the polls show.
Futures markets were "prudently guarded ahead of tomorrow's crop report," said Rich Feltes, head of market insights for broker RJ O'Brien.
Investors will also be watching for revisions to the USDA's world wheat projections given adverse weather ahead of harvests in Argentina and Australia, along with mixed signs about Black Sea flows.
Ukraine wants the Black Sea grain export deal expanded to include more ports and goods, and hopes a decision to extend the agreement for at least a year will be taken next week, Ukraine's deputy infrastructure minister said on Tuesday.
"We are still far from seeing any kind of return to normality," Commerzbank analysts said in a note. "It is still unclear whether (Ukrainian) grains exports will be able to continue."
Source: Successful Farming