The corn market is mostly lower at midday with bear spreading weighing on the December contract versus the deferred, in choppy sideways trade and a tight 2 ½ cent range.
The EIA reported average daily ethanol production for the week ending October 25 at 1.082 million barrels per day, up 0.1% from the week prior, and 2.9% higher than last year. Estimated corn used for production came in at 109.17 million bushels, exceeding the 104.32 mb needed to reach the USDA’s goals.
This morning the USDA announced private export sales totaling 273,048 metric tons of corn for delivery to unknown destinations for the 24/25 marketing year.
Soybeans are trading higher at midday, following through on overnight gains and reversing yesterday’s losses, supported by higher soybean oil and the report of two flash sales totaling 264,000 metric tons of soybeans.
Today the USDA announced two separate flash soybean sales. The first, private exporters sold 132,000 metric tons to China for the 24/25 marketing year, and the second sale was for 132,000 metric tons for delivery to unknown destinations, also for the 24/25 marketing year.
The Chinese government is reportedly closing some of its ports for the next 20 days in an effort to relieve congestion and oversupply of inventory. Due to potential delays, shippers may begin to incur demurrage, which could soften bids for exported supplies from the US and Brazil.
Seasonal declines in palm oil production are giving world vegetable oil prices a lift and adding support to soybean oil, which is trading higher after holding above its 100-day moving average for the third consecutive day.
All three wheat classes are trading higher at midday following a weaker overnight trade, led by Minneapolis and Chicago futures, and followed by KC, as buyers return following much lower-than-expected winter wheat ratings.
Interfax reported data from railway operator Rusagrotrans, that Russia’s October wheat exports are expected to reach a record 5.9 million metric tons, with July-October exports also reaching a record 20.8 mmt.
There are rumors that Morocco bought three cargoes of French wheat, which helped to support Matif prices, and possibly US prices due to the close spread relationship between Matif wheat and US wheat.
Some much needed rain is expected to fall in the Plains states over the next week, which will help crop conditions improve before dormancy.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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