Published by Oliver Kleinschmidt,
Editorial Assistant
Dry Bulk,
Monday, 01 July 2024 09:12
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CRM Agri’s daily market report has shown that US corn prices have tumbled, falling in Chicago to three-year lows below US$4.00/Bu, after the US Department of Agriculture (USDA) estimated its sowings of grain would be well above market expectations.
The USDA, in a highly anticipated update on US crop plantings for the 2024 harvest, estimated corn seedings at nearly 91.5 million acres.
That was more than 1.4 million acres above the figure shown by USDA survey in March of farmers’ planting intentions, and a far bigger upgrade too than expected by traders, who had pencilled in a 90.4 million acre figure.
Chicago corn futures for July-24, which had stood marginally higher before the data release, sank by 5.3% in the aftermath to US$3.92/Bu, the lowest for a spot contract since late 2020.
Furthermore, the better-traded new crop December-24 contract sank by 4.6% to hit its lowest levels since April 2021.
A separate USDA briefing showed US corn stocks as of 1 June at 4.99 billion bushels (126.8 million t), approximately 120 million bushels ahead of market expectations.
By contrast, US soybean stocks as of 1 June, set at 970 million bushels, came in close to market expectations, and the USDA’s revised sowings estimate for US soybeans of 86.1 million acres was well below 86.8 million acre figure that traders had forecasted.
Soybean futures for July-24 added 0.8%, with the new-crop November contract gaining 0.8%.
Chicago wheat futures for July-24, which had also stood higher before the data, sank by 2.3% afterwards, weighed by corn.
Most significantly, US sowings data for wheat came in, at 47.2 million acres, some 420 000 acres below market expectations, although a 1 June inventory figure of 702.1 million bushels (19.1 million t) was a little larger than forecast.
Wheat had stood higher heading into the report, offered some support by downgrade by SovEcon of 1.7 million t, to 46.1 million t, in its forecast for Russia’s wheat exports in 2024/25.
European contracts reversed early headway too, with London feed wheat for November-24 heading into the close down by 0.9%, while Paris September-24 milling wheat shed 1.4%.
Monday 01 July 2024 09:37
The Baltic Exchange dry bulk index has reported that it was an eventful week for the shipping market.
