Corn is trading lower this morning for what would be the second consecutive day in a row, and also gapped lower in the March contract. Prices came within less than three cents of the $5 mark on Wednesday which is big psychological resistance.
The Buenos Aires Grain Exchange reported that Argentina was most likely get rain in February that would put an end to the drought and stop the corn crop from deterioration. They expect Argentina to produce 49 mmt of corn.
Yesterday’s export sales report saw corn sales within the average trade guesses at 1,404k tons, but this was below last week’s sales of 1,670k tons.
Soybean futures are also trading lower this morning for what would be the second consecutive day of losses. The dollar is higher which could be adding pressure, but the improved Argentine forecast is the more likely culprit as evidenced by lower soybean meal. Soybean oil is slightly higher.
The US December soybean crush is expected to come in at a record high 217.6 million bushels according to analysts at Reuters. If this is realized, it would be up 3.6% from the 210.0 mb crushed in November and 6.6% from last December’s crush.
Yesterday’s export sales for soybeans were poor at just 443k tons. This compared to 1,493k tons the previous week. Primary destinations were to China, Spain, and the UK.
All three wheat classes are trading lower this morning after yesterday’s gains. Wheat is very sensitive to moves in the US dollar which is currently trading higher, but there seems to be a bearish tone overall in the grain markets this morning.
SovEcon has cut its estimate of Russian wheat export outlook as a result of limited supplies and low profitability for shipments abroad. Their export outlook is now at 42.8 mmt which is 2% lower than the previous estimate.
Yesterday’s export sales report was slightly better than expected for wheat at 480k tons sold. This compared to 215k last week, and the top buyers were the Philippines, unknown, and South Korea.
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