USDA stocks report delivers few surprises - News/prices

[CRM AgriCommodities]

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Cereals

• It was all about the USDA today as report failed to deliver any great surprises. US stocks of Corn and Soybeans were slightly below expectation and wheat slightly above (see chart of the day)
• Spring wheat production was the only real surprise with USDA 9% higher than the market expected.
• Syria finalised a deal with Russia to purchases 3MT of wheat over the next 3 years following a year of record Russian production - Reuters
• Defra today made some revisions to their June balance sheets for 2016 in the UK:
  • Wheat closing stocks - 1.766MT (-275KT), the lowest since 2013/14
  • Wheat imports - 1.834MT (+134KT)
  • Maize stocks - 301KT (+154KT)
• A weaker sterling helped UK wheat finish the quarter on a positive note despite lower EU and US wheat values.
• Ongoing dry weather in Australia is expected by analysts to lower production to 20MT ( lowest since 2007/08).

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Oilseeds

• Weaker soy oil and palm earlier in the day were not enough to keep rapeseed lower which found support from soybeans following the USDA release.
• The market was ready for some big price moves which have historically occurred but was disappointed.
• Sterling was weaker today after weaker Growth figures at 1.5% down from 1.7%.

Chart of the Day #1: US stocks

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Chart of the Day #1: Trade vs USDA estimates

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Futures & Options prices

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