US wheat futures moved higher, corn futures were flat while Chicago soybeans shed AUD$5.90 / tonne on the nearby contract. Weakness in soybean futures spilled over to a little profit taking in both ICE canola futures and Paris rapeseed, both exchanges posting slightly lower closes on the nearby.
The USDA WASDE report was out mid-morning US time.
Corn found a little buy the rumour / sell the fact type trade as the USDA confirmed that stocks would be significantly lower than last month’s estimate, no surprise there. US carry over was pegged at 34.34mt back 3.81mt due to increases in both domestic US usage and exports. I find it interesting the USDA left Chinese production, usage and ending stocks all unchanged from last month ??
World wheat stocks were also reduced by 5.67mt to 295.52mt. A slight decrease to production and increases to domestic feed and industrial usage and exports all contributed to the lower ending stocks number. Chinese wheat production was left unchanged as were their import projection but usage and ending stocks were adjusted to reflect a 5mt lower carry out.
Russian exports were increased resulting in a 500kt reduction to their ending stocks. Aussie numbers were left unchanged. Argentine production was increased 430kt to 17.63mt, the increase rolling straight onto ending stocks.
The USDA report basically confirmed what the trade have been punting for a week or two now, so further gains will need to find fuel from production issues in the northern hemisphere, like the dry weather in the US spring wheat belt and Canadian prairies, to keep moving higher.