Markets slid lower Wednesday, a day ahead of a slew of USDA January reports, including ones that will detail annual crop production and quarterly grain stocks.
Trading was choppy as markets took a wait-and-see stance, according to analysts.
January soybeans dropped 2.50 cents to $10.03, while corn edged down 1 cent to $3.57 ¼. Chicago March wheat dropped 8 cents to $4.18 3/5, amid reports of rainfall in the Midwest.
The marketing firm Water Street Solutions, of Peoria, Ill., observed that corn, along with the rest of the grains, regained some ground after falling sharply early in the session, weakened by news of the addition of Chinese tariffs added to U.S. DDG imports, as well as improved rainfall in Brazil and in the U.S. Plains, along with slowing export demand.
Soybeans also fell sharply, down 11 ½ from the open, but rebounded to end losing just over 2 cents, Water Street Solutions observed in its newsletter, Closing Comments.
The grain market was waiting for some direction from tomorrow’s report – which tends to be associated with more volatility than other government reports, according to Joe Vaclavik, president and founder of Standard Grain in Chicago.
“You always have the potential for a surprise in the grain stocks report,” he says. “The stocks number in corn is very difficult to predict and the reason ... is that it’s very difficult to predict feed usage.”
Wheat acreage is expected to go down sharply in tomorrow’s report, Vaclavik notes.