Headlines:
- Presidential Election is set for Tuesday November 8th
- The USDA WASDE Report is scheduled for November 9th
- Wheat futures fall on Russian crop prospects
It was another day of uncertainty, at the start of a big week for news, with the US elections and a key monthly report on grain market fundamentals from the US Department of Agriculture. But wheat prices came under pressure as newswire Bloomberg reported heavy planted area, suggesting another record crop might be on the card. Bloomberg saw winter wheat area up 8% year-on-year, noting “ample moisture” for planting. “Wheat sags on Bloomberg story about another record 2017 Russian wheat crop in the making,” reported Richard Feltes, at RJ O’Brien. “If this report is correct, then the largest wheat exporting region is going to have a lot of acreage to pull from,” said Darrell Holaday, at Country Futures. “The industry was aware of the fact that the wheat in the Black sea region was going into the winter in good condition, but was not expecting an 8% increase in area planted,” Mr Holaday said.
Summary:
On Wednesday the USDA will release the November WASDE report at noon eastern. Based off of the movement today, the general consensus is that the trade is expecting the Soybean figures to be favorable to upside movement. Corn traded inside of Wednesday’s trading range and has done so each day since Wednesday. Beans were stronger today with the January contract climbing 8.75 cents on the day. Volume has been on a steady decline from the middle of last week – that will probably continue to be the case until the report. We also have Election Tuesday tomorrow so all attention will be on the elections results and exit polling all day long.
Crude Oil futures got a boost today on news that the FBI would not recommend charges for Clinton pursuant to the new email review of her aide’s laptop. Crude futures made a low on Friday then post about a dollar in gains today. Wheat futures were weaker today. It did manage to recover from intraday lows and finished the day off 3.75 cents. The close was at 50% of the day’s trading range.
Private exporters reported activity to the USDA today was as follows:
- Export sales of 132k metric tons of soybeans for delivery to China during the 2016–2017 marketing year
- Export sales of 172k metric tons of corn for delivery to unknown destinations during the 2016–2017 marketing year
