Corn is trading slightly lower this morning as prices struggle to rally despite strong export sales with a flash sale reported nearly every day over the past two weeks. Funds seem reluctant to buy as harvest continues.
According to the US Department of Energy’s weekly petroleum report, US ethanol stocks fell by 2% to 21.771m bbl which was below analyst expectations. Plant production came in at 1.082m b/d which was above trade guesses.
Basis bids for corn have firmed around the Midwest this week as many have wrapped up corn harvest ahead of much needed rainfall forecast later this week.
Soybeans are trading higher again this morning and broke a four day losing streak yesterday with double digit gains. Support has primarily come from soybean oil and export sales. Soybean meal is trading lower while soybean oil is higher.
Estimates for September soybean crush is around 187.6 million bushels which would be a 7.3% increase from the previous year if realized.
Soybean basis levels have risen lately with quick ship incentives being reported. Nearby spreads have backed off this week but are still tighter than expected with current carryout projections.
All three wheat classes are trading lower this morning with KC wheat again leading the way lower. Pressure may be coming from potential rain in the forecast for Kansas and the Texas panhandle.
The USDA has the winter wheat crop pegged at just 38% good to excellent, this is only worse than 2022 when looking back at the last 40 years. Key winter wheat areas have not received the necessary rain.
SovEcon has lowered its estimate for Russia’s 24/25 grain export forecast citing a decrease in the crop forecast and a policy change that states that Russian grain must be delivered to consumers by Russian exporters only.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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