💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Grain futures mixed as USDA supply report eyed

Published 09/12/2011, 06:35 AM
Investing.com – Grain futures were mixed on Monday, as markets awaited the release of a key monthly U.S. government report on U.S. and global grain supplies.    

On the Chicago Mercantile Exchange, wheat futures for December delivery traded at USD7.2913 a bushel during European morning trade, edged 0.07% higher.

Meanwhile, corn for December delivery shed 0.25% to trade at USD7.3475 a bushel, while soybeans for November delivery eased up 0.13% to trade at USD14.2850 a bushel.

The U.S. Department of Agriculture was to release its closely-watched monthly supply and demand report on U.S. and global grain inventories later in the day.

The data could show that global wheat inventories fell to 188.9 million tons, the lowest since the 2007-08 season, as adverse weather conditions across key wheat-growing regions in the U.S. and Europe weighed on global output.

Global corn supplies for the 2011-12 marketing season were expected to total 636 million bushels, down 11% from last month’s USDA estimate and the lowest since the 1995-96 season.

U.S. corn stockpiles were expected to come in at 12.51 billion bushels, 3.1% lower from last month’s estimate, as severe drought conditions across most of the southern U.S. Great Plains damaged the quality of the harvest and reduced yields.

Hot summer weather and lack of rain were also likely to weigh on the U.S. soybean crop. U.S. farmers were expected to harvest 3.03 billion bushels of soybeans, down 1% from the USDA’s outlook in August and 9% lower than 2010 production levels.

Agribusiness financial service provider Rabobank said in a report earlier that it expected global grain supplies to remain tight in the 2011-12 marketing season, adding that the size of the crops will be further downgraded in future USDA reports, citing a smaller-than-expected Autumn harvest in the U.S.

Corn is the biggest U.S. crop, valued at USD66.7 billion in 2010, followed by soybeans at USD38.9 billion, government figures show. Wheat was fourth at USD13 billion, behind hay.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.