Wheat futures rose on Friday, with prices ending at more than three-week highs, while corn futures prices fell back from a nearly eight-year high following monthly supply-demand reports from the Ministry of Agriculture. industry.
USDA forecasts world wheat supplies at 1,076.5 million tonnes for the 2020/2021 marketing year, down from a previous forecast of 1,777.07 million tonnes, according to World Agricultural Supply and Demand Estimates Friday release. However, the government agency also said the world wheat production remained at a record 776.5 million tons.
Meanwhile, the end of 2020/2021 US wheat stocks are forecast at 852 million bushels, compared with the previous forecast of 836 million bushels.
On Friday, May wheat contract was most active
up 10 cents, or 1.6%, to $ 6.38 ¾ a bushel in Chicago. FactSet data shows prices ended at their highest since March 17.
USDA tightens its global wheat balance “a little, which could drive wheat prices out of the market,” said Sal Gilbertie, president and chief investment officer at Teucrium Trading. “The change isn’t big enough to get people too excited, but the wheat chart looks oversold in the short term and the corn price will keep wheat supported.”
For now, the data “may just be about finding weaker markets for wheat,” he said.
“No matter how people view it, the share of wheat in animal feed diets worldwide is likely to increase due to wheat’s current competitiveness with maize,” said Gilbertie. , ”Said Gilbertie and pointed out that the USDA did not emphasize that in the report.
USDA on Friday also lowered the US end-of-period maize forecast. For the 2020/2021 marketing year, they project a closing stock of 1.35 million bushels, down from a previous forecast of 1.50 million bushels.
May corn contract was most active
down 2 ½ cents, or 0.4%, to 5.77 ¼ dollars a bushel. The settlement price on Thursday was at $ 5.79 ¾, the highest ending since June 2013.
was traded at $ 14.03 per bushel, down 12 cents, or 0.9 percent. USDA said the US end-of-term soybean stocks forecast remained unchanged at 120 million bushels.
“End-of-season soybean stocks remained the same as USDA reduced residues to meet higher demand,” said Craig Turner, senior commodity broker at Daniels Trading. senior at Daniels Trading. “This implies that last year’s crop may have been underestimated.”
Overall, the USDA monthly report does not make any major surprises, “which could lead to a short-term return on grain,” said Gilbertie.
“However, the global picture of grain inventory tightening in the context of continued global demand for grain remains intact,” he said. “Grains are likely to be range bound while the market tracks the ongoing results of the harvest in South America, the progress of spring planting in the Northern Hemisphere and the rate of Chinese grain purchases. National “.