Corn futures continue to trade higher at midday, building on gains despite Tuesday’s declines.
The USDA lowered its final estimate for the 2024 U.S. corn harvest by nearly 2%, bringing it to 14.867 bb. Additionally, it reduced its forecast for U.S. corn stocks at the end of the 24/25 marketing year by 11%, from the December estimate to 1.54 bb.
Temperatures in Argentina are expected to be 1 to 3.5°C above normal across most of the country over the next 10 to 15 days. With dry conditions and minimal rainfall forecast, this trend is very unfavorable for crops.
Ukraine’s corn exports for the marketing year have reached 10.87 mt, down from 11.01 mt last year.
Ethanol production this week decreased by 1,095 tbd, or 322 million gallons, dropping from 324 million gallons the previous week. However, it remains 3.9% above the YA.
Soybeans are trading mixed at midday after a mixed start to the day. Soybeans and soybean meal are lower, while soybean oil sees some gains.
Brazil’s forecast calls for a mild temperature pattern over the next couple of weeks, with precipitation expected over the next 10 days, creating favorable growing conditions for soybeans.
Brazil’s crop agency Conab on Tuesday raised its soybean production forecast to 166.32 mmt, up from 166.21 mmt, citing favorable weather conditions ahead.
Potential moisture relief for Argentina is expected over the next week, though showers will be scattered, and some areas may not receive enough rain to prevent further deterioration of conditions.
Wheat is trading lower at midday, pressured by the strength of the U.S. dollar and weakening export demand.
Concerns are growing for the U.S. winter wheat crop as the cold snap continues across much of the central U.S. The crop has little to no ground cover, increasing fears of winterkill.
Ukraine’s exports for the 24/25 season have reached 10.336 mt, compared to 8.19 mt last year, but the pace has been slowing down over the last couple weeks.
Mexico’s wheat production has been impacted by drought in the northern half of the country, and there are concerns that wheat imports may be necessary this year.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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