Agriculture Markets Update – Wednesday, Sept. 15

Wheat

Wheat was mixed, with HRW a little higher and SRW a little lower. Minneapolis was lower but rallied off the lows to close near the bottom of a recent trading range.

assorted food in sacks

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The weekly export sales was poor once again. The demand has not been seen here, so the Winter Wheat markets have not been able to do more than hold in a range. Hurricane Ida did not reach most Wheat areas but could have brought some big rains to some SRW areas. Wheat loading ports in the US are mostly in Texas or the PNW and were not affected. Dry weather in southern Russia as well as the northern US Great Plains and Canadian Prairies remains a supportive feature in the market although the US and Canada are seeing some showers this week. Crop size estimates in Russia have been reduced and domestic Russian prices are above world prices. The Russian weather has been good for production in northern and western areas but is still trending dry in southern areas and into Kazakhstan. The weather in China and Europe is wet and there is potential for reduced quality in Europe. Europe is expecting top yields in some areas but less yield in others and parts of eastern Europe and northern Russia are expecting strong yields.

Weekly Chicago Soft Red Winter Wheat Futures

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Weekly Chicago Hard Red Winter Wheat Futures

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Weekly Minneapolis Hard Red Spring Wheat Futures

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Corn

Corn was higher in sell the rumor and buy the fact trading as USDA estimated yields, production, and ending stocks higher but close to trading expectations. Trends are now mixed on the daily charts but are still down on the weekly charts. Demand was increased to partially offset the increased production and ending stocks were just under 1.5 billion bushels. Most of the elevators along the Mississippi are starting to export again which is good news for nearby demand. The weather remains a feature of the trade but is less important now as the Corn is filling kernels and starting to mature. Ideas are that Brazil's Corn production could be less than 85 million tons so reduced production estimates are expected in coming reports. Oats were lower yesterday on speculative profit-taking before the USDA reports as the weather remains bad for production even with the crop near or in the harvest.

Weekly Corn Futures

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 Weekly Oats Futures

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Soybeans and Soybean Meal

Soybeans closed a little lower last week in Soybeans and lower in Soybean Oil but higher in Soybean Meal. The big news came on Friday when USDA released its production and WASDE reports. The reports showed increased production and ending stocks estimates from last month but were broadly in line with trade expectations. Futures traded higher on Friday in a sell the rumor and buy the fact trading situation.FSA released the plantings reports early on Wednesday and the Soybeans planted area was increased. The destruction of Gulf port facilities along the Mississippi River near New Orleans was still a factor in the trade but the elevators are coming on-line and exports have started to resume. The hurricane moved onshore in Louisiana a week ago and did extensive damage to the state, including the grain export elevators. The state also lost electrical posser in all affected areas but the power to the export elevators has started to be restored. Demand has held together despite the export problems but the export inspections report showed that very little is getting shipped right now as the exporters scramble to find other ports to send the grain. The weekly export sales report was also expected to be poor as many US exporters have had to pull offers for now   Demand is still weaker than expected overall.

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