Wheat and corn fell on Wednesday

On Wednesday, July 26, 2023, Chicago Mercantile Exchange (CBOT) wheat futures declined after hitting a five-month high in the previous session. As a result of the trading day, September quotations of soft winter wheat on the Chicago Mercantile Exchange CBOT fell to $264.55 per ton, September futures of hard winter wheat KCBT in Kansas City - to $317.92 per ton, September futures of hard spring wheat MGEX - to $329, 13 per ton.

Chicago corn and wheat futures edged down Wednesday on technical trading and news of better-than-expected spring wheat yields in parts of North Dakota, even as a heatwave swept through the US Midwest and parts of the Mississippi Valley.

Meanwhile, soybean futures rose steadily throughout the day, helped by a weaker US dollar and news of U.S. soybean export sales to unknown countries, the USDA said.

September wheat futures on the Chicago Mercantile Exchange (CBOT) fell 40-1/4 cents to $7.20 a bushel. December corn followed wheat, shedding 17 cents to settle at $5.48-1/4 a bushel. November soybean futures closed unchanged at $14.20 per bushel.

For most of Wednesday, traders focused on the weather and potential yields in the Midwest.

The National Oceanic and Atmospheric Administration's Global Forecasting System (GFS) is forecasting a heatwave of over 100 degrees Fahrenheit (37 degrees Celsius) in Iowa, said Don Roose, president of Iowa-based US Commodities.

Even as heatwaves swept through parts of the mid-Mississippi Valley and Midwest, with some farmers in Missouri reporting strong winds and scorching heat, traders said reports of crop-friendly rains in the northern Midwest weighed on markets.

Early results from the annual wheat crop tour in North Dakota (the largest producer of spring wheat in the US) suggest that spring wheat yields in south and east-central North Dakota will be slightly lower than last year, but higher than last year. an average of five years. Participants estimated an average hard red spring wheat yield of 48.1 bu/acre (32.4 c/ha) after surveying 130 fields, compared to the first day of the tour in 2022 of 48.9 bu/ac (32.9 c/ha). ha) and a five-year average of 40.2 bush/acre (27 q/ha).

On the Chicago Mercantile Exchange (CBOT) on Wednesday, contracts for delivery in September, November, December:

wheat (September 2023) - 264.55 dollars / t (23830 rubles / t) - minus 5.29%;
corn (dkbr 2023) - 215.85 dollars / t (19450 rubles / t) - minus 3.01%;
soybeans (nbr. 2023) - 521.75 dollars / t (47010 rubles / t) - 0%;
raw rice (September 2023) - 776.34 USD/t (69940 RUB/t) - minus 0.53%;
rapeseed (ICE, Nov. 2023) - 830.80 cad/t (56830 RUB/t) - plus 0.83%.

The European Union Harvest Monitoring Service (MARS) cut EU yield forecasts for soft wheat, corn, spring barley and sunflower due to dry and hot weather. The yield of soft wheat is projected at 58.0 c/ha against 59.2 c/ha last month, corn - 75.3 c/ha against 76.1 c/ha, spring barley - 36.2 c/ha against 37 .3 c/ha, sunflower - 21.2 c/ha against 22.1 c/ha.

According to FranceAgriMer monitoring, as of July 17, soft wheat was threshed on 58% of the planned area in France (+25% per week), which is inferior to the result of the previous year (79%), but exceeds the average of the last five years (53%) . It is noted that the condition of wheat crops has not changed over the week and 80% of soft wheat is in good and excellent condition (63% over the past 5 years. The share of corn crops in good and excellent condition has also remained unchanged - 82%, as a week earlier, which exceeds the results of the previous year (75%).

On Wednesday, the French grain fell again. As a result of the trading day, the September quotations of milling wheat on the Parisian MATIF exchange fell to €253.50 per ton (in dollar terms - to $280.95). November corn futures fell to €243.00 per tonne (in dollar terms they rose to $269.32).

On the Paris Stock Exchange (MATIF) on Wednesday, the quotes for the August and September contracts at the close of trading amounted to:

milling wheat (Sept. 2023) - 280.95 USD/t (25310 RUB/t) - minus 2.89%;
corn (NBR 2023) - 269.32 USD/t (24260 RUB/t) - minus 1.25%;
sunflower (Aug. on the SAFEX exchange - 9481 zar. / t (48230 rub. / t) - plus 0.33%;
sunflower oil. (July, over-the-counter index NTB SOEXP) - 810.86 dollars per ton (73,050 rubles per ton) - minus 0.1133%.