A quarterly USDA grain stocks report released midday Thursday caused a downward correction in the grain markets, showing larger stockpiles of corn, wheat and soybeans than had been anticipated.
Prices tumbled immediately when the report was released at 11 a.m. Thursday, led lower by corn, which had stockpiles that were 7.7 percent higher than expectations. By the end of the day, May corn had fallen the exchange-maximum 40 cents per bushel (5.4 percent) to $6.95, May soybeans sank 49 cents (3.4 percent) to $14.09 and May wheat withered by 49 cents (6.6 percent) to $6.88.
In the near future, consumers, producers and traders will be closely watching planting weather as American farmers prepare to plant this year’s spring crop of corn, wheat and soybeans.
Crude Oil Climbs
Signs of a stronger U.S. economy and record-high stock market helped to pull crude oil higher this week. Strong housing and manufacturing data contributed to five consecutive positive trading sessions, climbing $4.74 per barrel (5.1 percent). Although the United States continues to have relatively large stockpiles of crude oil, the worst gluts in the Midwest are beginning to subside, driving prices for domestic crude oil higher.
At of the close of markets on Thursday, crude oil for delivery in May was worth $97.23, the highest price in over a month.
Despite the sharp rally in crude oil, gasoline products were only pulled slightly higher, rising 6 cents per gallon this week (2 percent).
On Thursday, sugar prices fell to the lowest level in nearly three years, dropping beneath 18 cents per pound.
The market has been falling as Brazil prepares to harvest a record sugarcane crop. Brazil is the world’s largest producer and exporter of sugar. Ample global supplies have cut the price of the sweetener in half over the last two years, with prices falling sharply from their high of 36 cents per pound in February 2011.
As of Thursday’s close, May sugar futures were worth 17.66 cents, down 0.54 cents (3 percent) on the week.