USDA leaves US corn shares unchanged, baffling merchants
USDA stories US wheat inventories increased than commerce expectations
Chinese language demand a fear for US soy market
(Recasts to replicate market strikes, updates headline, provides closing costs)
CHICAGO, March 11 (Reuters) – Chicago Board of Commerce soybean futures ended decrease on Tuesday for a 3rd straight session, coming underneath stress from hefty South American provides hitting the worldwide market and uncertainty over how U.S. tariffs will have an effect on home demand, merchants stated.
Corn fell throughout a uneven buying and selling session, after the federal authorities left home corn inventories unchanged in a month-to-month supply-and-demand report – regardless of sturdy export gross sales and commerce tensions with prime purchaser Mexico.
Wheat futures ended decrease after the U.S. Division of Agriculture reported home and international wheat inventories had been larger than commerce expectations.
The CBOT’s most-active wheat closed down 5-3/4 cents at $5.56-3/4 a bushel. Corn ended down 1-3/4 cents at $4.70-1/4 a bushel, whereas soybeans settled down 2-3/4 cents at $10.11-1/4 per bushel.
Weak spot within the canola market weighed on soyoil costs, which additionally carried over to stress soybean futures, merchants stated.
Merchants and farmers are holding a detailed eye on exports, with U.S. tariff disputes with main patrons Mexico, Canada and China threatening gross sales of U.S. agricultural items. They stated USDA doubtless held off on adjustments because it waits to see whether or not the U.S. implements recent tariffs and the way buying and selling companions reply.
Fears that U.S. tariffs will damage financial development have unsettled monetary markets, whereas grain buyers are cautious that China could shun U.S. soybeans altogether in favor of a bumper Brazilian crop.
With the tariff struggle roiling between the U.S. and China, “the query is, the place are we going to promote the (U.S.) beans? Nobody is aware of,” stated Jack Scoville, vp at Worth Futures Group in Chicago.
For corn futures, some analysts had been baffled why USDA stored the U.S. corn export forecast unchanged, given the present tempo of gross sales.
“I get the entire dialog about commerce and tariffs and the unknown,” stated Angie Setzer, associate at Consus Ag. “But when all you are able to do is predict the futures primarily based on regular market developments, as they’ve advised me they do, I am undecided how they’ll rationalize not making an adjustment at this level.” (Further reporting by Tom Polansek and Heather Schlitz in Chicago, and Gus Trompiz in Paris and Naveen Thukral in Singapore; Enhancing by Alan Barona, Janane Venkatraman, David Evans, Alison Williams and Rod Nickel)
