Grains sagged along with other financial markets on Wednesday after Federal Reserve Chairman Powell issued cautious comments about the US economy. Corn gave back Tuesday's post-report gains & beans & wheat tumbled to double-digit losses as COVID-related demand worries dominated trade sentiment.
Grains turned lower ahead of the 11 am release of the May 12 USDA supply-demand report. Traders expect USDA to boost old-crop corn, soybean & wheat ending stocks, project record-high new-crop corn output & the largest new-crop corn stocks since 1987/88 & a reduction in new-crop soybean & wheat stocks to still ample levels.
Corn & soybeans closed higher, & wheat was mixed as late-morning gains faded into the close. Positioning for Tuesday's USDA WASDE revisions is the dominant market feature right now.
Grains are under pressure on Wednesday as weak energy prices & worries about old- & new-crop demand limit speculative buying interest.
Grains are rallying on month-end short-covering on Thursday as traders book profits across an array or markets.
Corn & beans traded on both sides of unchanged on Wednesday morning before tuning higher during the noon hour, but wheat has remained lower ahead of Thurdsay's first notice day on May grain futures.
Grains faded from overnight gains with corn futures again the weakest grain due to its energy ties.
Crude oil led grains lower on Monday as traders ignored improved weekly export inspections on expectations that domestic feed & processing demand are eroding & 2020 acreage will be sustained by normal planting dates.
Corn is higher, beans are mixed & wheat is modestly lower on Wednesday. Gains in crude oil & signs of Chinese interest are underpinning prices today.
Grains are again following crude oil lower on Tuesday as traders worry that demand is falling & supply will grow increasingly burdensome. Planting prospects are close enough to average to be considered timely.