Headlines:
- THE HARVEST PROGRESS REPORT IS DUE FOR RELEASE ON MONDAY OCTOBER 3RD AT 4PM EST.
- RECOVERING MACRO–MARKETS SUPPORTS SOFTS FUTURES
Soft markets saw a volatile day’s trading, as early fears over the financial sector squalls in Europe ebbed away, helping most contracts close stronger than they opened. The macro-economic environment was initially shaky, as stock markets sagged over fears in the financial sector. Shares in in Deutsche Bank, Germany’s largest lender, slide some 10% on fears about its financial help, with reports that hedge funds are selling out of the troubled institution, bringing other bank stocks, and equity markets as a whole, down with them. The fears of another European banking crises sent stock markets across in Europe sharply lower. But prices recovered as Deutsche Bank’s chief executive hit back at the rumors in a market note, with New York markets opening up on the previous session, and rising throughout the day. - IGC FLAGS RISING WORLD GRAIN STOCKS, DESPITE EU HARVEST WOES
The International Grains Council underlined disappointment at the European Union’s cereals output, even as it said that the world wheat harvest would set a record by an even bigger margin than previously thought. The intergovernmental group said that a downgrade of 3m tonnes to 1.03bn tonnes in its forecast for world corn production in 2016-17 reflected downgrades in the European Union and China, where “overly dry weather has affected crop prospects”.
Summary:
Corn futures finished higher today. The USDA released ending stocks figures that were a bit lower than trade expectations. The Corn ending stocks estimate came in at 1.738 Billion Bushels (BB) versus the average expectation of 1.757 BB. The favorable dry weather that was forecasted early in the week came through as projected and the harvest progress should make some headway over the weekend.
It was Corn that led the way today pulling Beans and Wheat higher after they traded a bit lower in early trading. USDA ending Soybean stocks estimates came in at 197 Million Bushels (MB) versus the 202 MB trade average numbers. At the onset of the USDA’s release Beans dropped selling off and briefly traded at 943. It managed to pull itself together and close at 953.50 for a gain of 3.25 cents. Additionally, Soybean export sales of 118K metric tons (MT) to China and 198k MT to unknown for the 2016-17 crop year were announced.
Like Beans, Wheat sold off at the noon eastern announcement and was down quite a bit reaching down to 390 in intraday trading. It put together a huge reversal closing the day at 402, up 3 cents at settlement. The USDA ending Wheat stocks estimates were at 2.527 BB versus the trade average estimate of 2.398 BB. The rally in Wheat during the second half of the regular session trading day was rather impressive.
