Corn is trading higher this morning after posting gains yesterday and is at the top of its recent range, but still unable to break through $5 in the March contract. Yesterday’s export sales were supportive.
Corn demand has begun to slip as the US exits its export window, but yesterday, a sale of 130,320 mt of corn was reported to unknown destinations. The weekly ethanol EIA petroleum status report saw slightly lower ethanol production at 1.082 million bpd.
In Argentina, the corn crop conditions were updated showing that the stretch of dry weather impacted crop ratings. 7 points were cut from the good to excellent conditions with 67% of the crop rated normal to regular and 33% poor to very poor.
Soybeans are trading higher this morning along with corn and wheat after finding support for the second consecutive day at the 100-day moving average. Both soybean meal and oil are trading higher as well.
Yesterday’s export sales report was poor for soybeans coming in below the range of analyst estimates at 7.7 million bushels. Primary destinations were to China, Egypt, and the Netherlands.
South American weather has improved and prices in Brazil have become much more competitive with the US. The USDA is estimating Brazilian soybean production at 169 mmt while other firms are closer to 172 mmt, a huge crop either way.
All three wheat classes are higher to start the day again, and the March Chicago wheat futures are once again nearing the $6 mark that they have been unable to pass for months. World wheat values have risen supporting US wheat prices.
Yesterday’s export sales report was better than expected for wheat with 22.3 million bushels sold, towards the higher end of analyst estimates. Primary destinations were to Mexico, South Korea, and the Philippines.
Global weather uncertainty could be providing support, with dry conditions in Ukraine and Russia and colder temperatures expected next week in both Russia and the U.S. Plains.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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