TOP STORIES:
Wheat Higher as Global Supply Looks to Fall
Wheat for May delivery rose 1.6% to $6.38 3/4 a bushel, on the Chicago Board of Trade Friday, maintaining an uptick in prices after the WASDE report showed tighter world supplies for wheat.
Wheat futures on the CBOT found support following the release of the monthly WASDE by the USDA. In its report, the USDA cut world wheat ending stocks by 5.7 million metric tons, to 295.5 million tons. "The 2020/21 global wheat outlook is for slightly smaller supplies, increased consumption, higher exports and reduced stocks this month," said the USDA in the report. World production is also projected to drop, with the USDA cutting it by 300,000 tons to 776.5 million tons.
Unsurprising WASDE Pares Corn Gains -- Market Talk
12:36 ET - US corn inventories were forecast lower by the USDA in its latest WASDE report released this afternoon -- estimating ending stocks at 1.35B bushels, down from a projection of 1.5B bushels last month. The cut was roughly what was anticipated by analysts surveyed by WSJ, which caused momentum in grains futures to grind to a halt. "The report was fairly neutral in the corn," says Charlie Sernatinger of ED&F Man Capital. Corn futures were trading 0.9% higher before the WASDE's release, but are now trading up 0.5%. (kirk.maltais@wsj.com; @kirkmaltais)
STORIES OF INTEREST:
Fund Traders Cut Corn Long Positions
Large funds have pulled back their long positions in corn, according to government data.
Managed money funds cut over 12,000 long contracts in corn for the week ended April 6, according to the commitment of traders report from the Commodity Futures Trading Commission. Funds also cut their short positions in corn by over 4,000 contracts.
Soybeans Turn Lower as Wasde Suggests More Supply -- Market Talk
12:44 ET - Soybean futures are down following the USDA's release of its monthly Wasde report, with CBOT most active futures down 0.4%. Grains traders are reacting to the USDA not changing its outlook to US soybean ending inventories at 120M bushels. "Soybean ending stocks stayed the same as the USDA reduces the residual to account for higher demand," Craig Turner of Daniels Trading says. "This implies last year's crop may have been understated." Meanwhile, Brazilian soybean production is seen as being higher than expected by analysts. Before the report's release this afternoon, soybean futures were trading 0.1% lower. (kirk.maltais@wsj.com; @kirkmaltais)
THE MARKETS:
Cattle Futures Sink as USDA Projects Higher Beef Production -- Market Talk
15:27 ET - Live cattle futures trading on the CME closed trading Friday down 2% to $1.22575 per pound. One reason for the drop in futures came from the USDA's WASDE report released at noon eastern time--which showed a higher beef production estimate based on the expectation of higher volumes of cattle slaughtered. However, the USDA did raise its target for cattle prices in 2021 "on current price strength and firm demand." Hog futures finished trading today up 0.2% to $1.0895 per pound, with the USDA calling for US pork production to be lower due to a slower pace of slaughter. (kirk.maltais@wsj.com; @kirkmaltais)
(END) Dow Jones Newswires
04-09-21 1739ET
