VINIMEX are pleased to update market news on August 10, 2022 as below
COMMODITY MARKET MOVEMENT ON CBOT – August 09, 2022
Weather: The Northern Plains and upper Midwest will see below-average precipitation, according to NOAA’s new 8-to-14-day forecast. Between Wednesday and Saturday, the central United States should see little rain. Some measurable moisture was recorded in North Dakota, Minnesota, and Iowa. The eastern Corn Belt will experience cooler-than-normal temperatures next week.
General: On Wednesday, US soybean prices rose more than 4% after the US Department of Agriculture released a poor set of crop quality data. Soybeans benefited the most, while corn prices increased by more than 1%. Wheat gains were somewhat variable, ranging from less than 0.1% to more than 1.4% depending on crop maturity.
SOYBEANCrop Progress data from NASS revealed that the drop in condition ratings was primarily due to the WCB, with MN down 7, NE down 8, ND down 13, and SD down 9 points. Ratings in Illinois were up 3 points, IN was up 7 points, and other “fringe” states improved. According to the 7-day QPF, much of the main growing regions will receive little to no rain over the next week. Looking ahead to the middle of the month, the 8-14 day forecast shows near-normal temperatures and below-normal precipitation. Bloomberg polled analysts and found that old crop soybean stocks were estimated to be 225.6 million bushels, a 10 million bushel increase from the USDA’s July estimate. The new crop is only 5 to 225 mbu.
CORNAccording to NASS crop condition ratings by state, the Plains bore the brunt of the US drop, with KS down 12, ND down 15, SD down 16, and NE down 10. Conditions in Iowa and Minnesota were also 4 points lower. The ECB was in slightly better shape, with IL up 4, IN up 6, and OH steady. The USDA reported a new crop flash sale to China of 133,000 MT via their daily reporting system. The trade expects USDA to increase ending stocks for old crop by 10 mbu to 1.52 bbu ahead of Friday’s WASDE. The new crop is estimated to be 1.406 bbu, a 64 mbu decrease from the lower-than-expected output.
WHEATAccording to the USDA’s National Agricultural Statistics Service, much of the winter wheat harvest lag was in the northwest states, with WA 30% below normal, ID 27% behind, and OR 14% below average. The spring wheat harvest in North Dakota was lagging, with only 0% harvested by Sunday. Each of the six states’ spring wheat crop condition ratings were deteriorating, led by a 27-point drop in SD, followed by a 9-point drop in MN and a 6-point drop in ND. In a tender due Wednesday, Japan’s MAFF is seeking 82,955 MT of US and Canadian wheat, with only 25,070 MT US specific.
PRICE MOVEMENT ON CBOT AUGUST 09