The United States Department of Agriculture (USDA) is set to release the highly anticipated supply and demand report for March during the US afternoon session. The report is notorious for serving up considerable volatility in the commodities trading markets, and will likely form the medium term directional bias across the majority of grain commodities.
Heading into the release, markets look mixed, likely as a combination of commodities trading and investment participants reduce exposure to the potential volatility and back speculative plays.
US wheat futures (May 14 delivery) (ZWK4) are trading at 691.13, a 0.59% discount to the day’s open. The dip comes on the back of a bumper month for the grain, which has seen a close to 20% increase in price since the start of March.
Similarly, US corn futures (May 14 delivery) (ZCK4) are currently trading at a 1.90% discount to Friday’s market open, priced at 481.88. The price represents five day lows in corn, and comes despite a surge in price during Friday’s trading on reports of year-long high export levels.
US soybeans futures (May 14 delivery) (ZSK$) are bucking the overarching grain commodity trend, currently trading at 1,440.00, a 0.25% premium to the day’s opening price. Soybeans have remained relatively flat since Thursday’s surge, and despite not quite reaching March 7 highs of 1,439.88, have rallied throughout the final two weeks of the month to close up overall.
Shifting to soft commodities trading, US coffee C futures (May 14 delivery) (KCK4) are down 0.94%, currently trading at 178.25; US cocoa futures (May 14 delivery) (CCK4) are up 0.89%, currently trading above long term resistance at 3,002.00; and US sugar No11 futures (May 14 delivery) (SBK4) are down 0.56%, trading at 17.87.
As mentioned, the unraveling of commodities trading positions ahead of the USDA report will likely drive uncertainty across the commodities markets during the US morning, but look for any major surprises to offer up opportunity on its release.
To contact the reporter of this story: Samuel Rae at firstname.lastname@example.org