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Wheat Falls as Stockpile, Production Forecasts Beat Expectations
Wheat futures fell on forecasts for a bigger-than-expected U.S. harvest this year despite continuing drought in the Great Plains.
Sizzling temperatures and dry soil in the northern Plains, where much of the spring wheat crop is grown, won't dent total wheat production as much as expected this year, the U.S. Department of Agriculture said Wednesday in a monthly report.
The USDA forecasted wheat production of 1.76 billion bushels in the 2017-18 crop year, down from 2.31 billion bushels in 2016-17 but above what analysts were expecting.
Soybeans Regain Some Ground on USDA Report -- Market Talk
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12:44 ET - The USDA doesn't change its view much on this year's US soybean crop in its monthly supply-and-demand report, continuing to project 48 bushels of the oilseeds per acre on average, but the steady view soothes some futures traders, bracing for the agency to forecast a bigger crop. August soybean futures recently fell 0.2% at $10.27 3/4 a bushel, versus a 0.5% decline ahead of the report, with contracts also gaining strength as the USDA reduces stockpile estimates for the US--though the rest of the world is expected to have a larger supply of soybeans in the coming crop year. (firstname.lastname@example.org; @jacobbunge)
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Russia To Retake First Place in Wheat, USDA Says -- Market Talk
13:35 ET - Russia will resume its run as a wheat powerhouse, the USDA says in a monthly report, boosting forecasts for grain production and exports from the key US rival. If the government's projections bear out, Russian wheat exports will beat the US this season, making Russia the world's top wheat shipper again after a softer dollar helped the US edge into first place in the previous season. The USDA says growing conditions in Russia mirror last year, when farmers in that country raised record yields. Meanwhile, US harvests are expected to fall nearly 24% from last season on account of poor weather in the Great Plains. The USDA cut its projection for US wheat exports, boosting stockpile forecasts and sending grain prices lower. CBOT Sept. wheat prices down 2.9% to $5.37/bu. (email@example.com; @jessenewman13)
Cattle Climb on Grain Supply
Cattle futures rose to their upper daily limits on Wednesday as feed prices dipped on government supply-and-demand figures.
The U.S. Department of Agriculture raised its projections for domestic and global corn stocks above expectations. That helped send futures contracts for the grain, a crucial component of cattle feed, down 4% and lowered costs for commercial feedlots to fatten their cattle.
Feeder cattle futures for August delivery bounced 4 1/2 cents, or 3.1%, to $1.5175 a pound at the Chicago Mercantile Exchange, hitting a month-high and the upper end of its daily trading band.
(END) Dow Jones Newswires
July 12, 2017 17:40 ET (21:40 GMT)