Futures Close Report: 12th October 2017

USDA  Cut its U.S. soybean yield estimate to 49.5 bushels per acre (bpa), down from 49.9 bpa in September – below market analysts expectations.  US Stock positions were also lowered due to a lower carry, firming both Soybean and Soymeal markets.

For wheat, USDA increased its U.S. and global 2017/18 wheat ending stocks forecasts.  It lifted the forecast for world inventories at the end of the crop in June 2018 to 268.13 million tonnes from 263.14 million tonnes estimated last month.

Continued dry conditions in Brazil also supportive to CBOT Meal markets.

China, the world’s top soybean buyer, imported 8.1 million tonnes of the oilseed in September, up 12.7 percent year on year.  This is around 1mmt more than market analysts expected, and has been supported by faster than expected loading of vessels in South American ports.  Year to date (Oct 16 to Sept 17) imports now at 93.5 million tonnes, well in excess of 16/17 figure of 83.2 million as robust demand growth continues.

French farmers had harvested 28% of this year’s grain maize crop by Oct. 9, up from 15% a week earlier according to FranceAgriMer.  Maize conditions remained favourable, with 81% of crops rated good or excellent, up from 80% a week earlier and just 53% a year ago.  Planting for next years wheat crop was put at 20% complete slightly slower than last year.