Wheat for December Delivery

The price of wheat for December delivery decreased by 2.7% to $6.01 1/2 a bushel on the Chicago Board of Trade on Tuesday. This decline can be attributed to weaker domestic and export demand in Russia.

Corn for December Delivery

Similarly, the price of corn for December delivery fell by 1.8% to $4.87 3/4 a bushel.

Soybeans for November Delivery

Soybeans also experienced a decrease in price, with November delivery falling by 1% to $13.92 a bushel.

HIGHLIGHTS

Eyes on Russia

SovEcon, an agricultural consulting agency, reported that the average price for Russian wheat is in a downtrend after 12 weeks of gains. They noted that both domestic wheat buyers and exporters are purchasing less, likely due to having already secured sufficient stocks for upcoming shipments. Additionally, a better outlook for Russia's wheat harvest is contributing to the decline in prices, which is having an impact on wheat prices worldwide.

Stopping for a Breath

Although grain traders expected significant declines in the quality of U.S. crops due to hot weather conditions in the Corn Belt, the actual decline was less severe. Corn in good or excellent condition dropped by 2 points to 56%, soybeans fell by 1 point to 58%, and spring wheat fell by 1 point to 37%. Due to these more moderate quality declines, CBOT futures were able to regain some of their recent gains, according to AgResource.

Fresh Flashes

The USDA has made an exciting announcement regarding a new round of flash sales. This time, it's all about soy products. The agency has revealed that a substantial amount of U.S. soybeans, specifically 246,100 metric tons, have been sold to unknown destinations for delivery in the 2023/24 marketing year. But that's not all – an additional 105,000 tons of soybean cake and meal have also been sold to undisclosed locations for the same period. With consecutive days of flash sales, traders are optimistic about the future of export demand.

Pressure Point

Last week's intense heat wave in the Corn Belt has left grain traders contemplating its adverse effects on soybeans, particularly when compared to corn. However, they are now reevaluating how much the subdued soybean production in the United States would impact the global market. While the soybean balance sheet in the U.S. puts pressure on prices, experts still anticipate a record production from Brazil and Argentina combined next year. Jake Hanley of Teucrium Trading shares this perspective.

Dropping Back

In tomorrow's EIA report, it is projected that daily ethanol production in the U.S. will decline to levels last seen in May. Analysts surveyed by Dow Jones expect output ranging from 985,000 to 1.03 million barrels per day for the week ending on August 25th. It has been three months since daily production dropped below 1 million barrels. As for inventories, they are likely to remain around the 22.8 million barrels mark from the last report. The analysts predict a range of 22.4 million to 23 million barrels.

• The EIA will release its weekly ethanol production and stocks report at 10:30 a.m. ET Wednesday.
• The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.
• The U.S. Drought Monitor will release its updated map at 8:30 a.m. ET Thursday.

USDA to Release Monthly Agricultural Prices Report

The United States Department of Agriculture (USDA) is set to release its highly anticipated monthly Agricultural Prices report on Thursday at 3 p.m. Eastern Time (ET). This report provides valuable insights into the current state of the agricultural industry, helping stakeholders make informed decisions.

Be sure to stay updated on the latest developments in the agricultural sector.