Corn futures continue weaker at midday following news that Argentina will temporarily reduce export taxes to incentivize farmers to sell as the harvest season ramps up in the upcoming weeks.
Heat and dry conditions continue to stress Argentina’s crops, with the 15-day forecast showing no relief in sight. Crop stress is expected to persist, and conditions are likely to worsen.
The weekly export sales report revealed corn exports at 66 mb, at the high end of expectations. Year-to-date corn export commitments total 1.650 bb, up 29% from YA, compared to the USDA’s forecast of up 7%.
Soybean futures fall at midday also following the Argentina export tax news. While soybean meal and soybeans experience losses, soybean oil sees slight gains.
Argentina’s forecast remains unchanged, with moisture deficits growing in the east-central and southeast crop regions, while the northern area has experienced some relief.
The Buenos Aires Grain Exchange reduced its production estimate by 1 mt to 49.6 mt, down from the USDA’s estimate of 52 mt for Argentina’s crops.
Soybean exports totaled 55 mb, in line with expectations. Year-to-date soybean commitments stand at 1.555 bb, up 11.5% from YA, compared to the USDA’s forecast of up 8%.
All three classes of wheat are trading lower at midday, following corn and soybeans, after the news of Argentina’s export tax reduction.
Wheat exports totaled 8 mb, at the low end of expectations, bringing year-to-date commitments to 650 mb, up 7% from YA, compared to the USDA’s forecast of up 20%.
China raised their wheat production to 140.1 mt, up 3.5 million from last season due to better yields. The strong crop and increased production are the reasons China is re-selling previously purchased wheat from Australia to other global buyers.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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