Futures Close Report: 6th Sept 2017

Brazil is expected to export a record 65 million tonnes of soy grains in 2018 although the country’s overall output may fall, according to the first forecast by Oil Industry Association, Abiove.  In the same report Abiove said domestic soy processing will reach 43 million tonnes next year, 1.5 million tonnes above the forecast figure for 2017, due to an expected increase in domestic demand to produce biodiesel from soybeans.

Statscan on Wednesday estimated total Canadian wheat stocks as of July 31 at 6.9 million tonnes, up nearly 33% from 5.2 million a year earlier and above an average of trade expectations for 6.0 million. However much of the increase in stock was due to increased levels of Durum wheat.  OSR (canola) stocks were put at 1.3 million tonnes, down 35.5 percent from 2.1 million a year earlier but roughly in line with a range of trade expectations.

Some concerns over hot and dry weather over the US Midwest for the next 10 days which may stress maturing soybean crops.