Soybean stocks were reduced by the U.S. Agriculture Department amid a more than anticipated crush answering rising production of soyoil and soymeal, according to The Wall Street Journal.
But the federal department boosted forecasts for wheat stocks due to reduced exports, which pulled down wheat futures on Tuesday. Soybeans, which also were edging down in value on Tuesday, are one of this year's success stories on the commodity complex, according to senior broker Kurt Pfafflin with Daniels Trading.
"Global wheat supplies for 2012-13 are projected 1.6 million tons higher as a 3.7-million-ton increase in world production more than offsets lower beginning stocks, mostly reflecting higher 2011-12 wheat feeding for China," according to the once-monthly USDA report, as cited by Bloomberg. "China wheat production for 2012-13 is raised 2.6 million tons, based on the latest official estimates from the National Bureau of Statistics."
At 9:40 a.m. on Tuesday, wheat futures fell 2.06 percent, a 0.175-cent loss to $8.3125 per bushel. At 9:41 a.m., soybean futures fell 0.05 percent, a 0.0075-cent slide to $14.74 per bushel.
Two big South American producers of soybeans endured mixed weather this past weekend, Cattle Network reports. Planting was delayed in Argentina due to arid conditions while showers in Brazil helped crops.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
