Corn prices in Chicago lost ground on Monday, while soybean prices were little changed, as both markets weighed down by US government forecasts of bigger crops than ever.
Winter wheat prices edged higher, retaining strong gains from the previous session as expectations of crop losses in the drought-hit US plains supported prices.
FUNDAMENTALS
* The most active corn contract on the Chicago Board of Trade (CBOT) was down 0.5% at $5.83-1/2 a bushel, as of 00:12 GMT and soybeans were unchanged at $13.90 on bushel.
* KC Hard Red Winter wheat futures rose 0.6% to $8.82 a bushel, after climbing 4.2% on Friday.
* In its monthly supply and demand report, the United States Department of Agriculture (USDA) said the Plains wheat crop would be the lowest since 1957, farmers in Kansas, Oklahoma and of Texas having been forced to abandon their crops due to drought.
* Global wheat importers and exporters are closely watching negotiations to expand the Black Sea Grain Pact that allows Ukraine to ship grain despite the war with Russia.
* Turkish Defense Minister Hulusi Akar said parties to the Black Sea Grains Pact were close to reaching an agreement to extend it after talks between Ukrainian, Russian, Turkish and United Nations officials .
* Russia threatened to quit the deal on May 18 over obstacles to its grain and fertilizer exports and the four sides discussed UN proposals on Thursday to extend the deal.
* The USDA said Friday that U.S. corn and soybean supplies are expected to rise sharply in the coming year on expectations of a record harvest for both crops.
*Maize ending stocks for crop year 2023/24 were estimated at 2.222 billion bushels, down from 1.417 billion in 2022/23. Soybean stocks are expected to fall from 215 million to 335 million bushels, while wheat stocks are expected to fall to 556 million bushels, their lowest level since 2008.
* However, corn and soybean production forecasts will be highly dependent on weather conditions in the US Midwest over the coming months, which will be a major market concern as farmers complete planting and harvesting.
* China is dramatically increasing the inspection rate of imported soybean shipments, three soybean traders told Reuters on Friday, adding to already slow and costly uptimes in the world’s top soybean buyer.
* Large speculators reduced their net short position in CBOT corn futures in the week ending May 9, regulatory data showed Friday.
* The Commodity Futures Trading Commission’s weekly Trader Commitments report also showed that non-commercial traders, a category that includes hedge funds, reduced their net short position in CBOT wheat and their net long position in soybeans .
MARKET NEWS
* The dollar appreciated on Friday, but the global equities gauge retreated following a report that showed US consumer sentiment slumped to a six-month low in May, bolstering bearish sentiment investors regarding negotiations on raising the US government’s debt ceiling.
DATA/EVENTS (GMT) 1000 EU Reserve Assets Total April Eurogroup finance ministers meet in Brussels (Report by Naveen Thukral)
2023-05-15 00:45:40
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