Corn is trading slightly higher this morning ahead of the WASDE report which will be released at 11 central. Prices have been primarily supported by good recent export sales, but may see pressure from large ending stock numbers.
Yesterday’s export sales report saw corn sales over 108.9 mb which put total commitments at 1.04 billion bushels and is well ahead of last year’s pace. The recent increase in export sales are likely due to other countries stocking up before potential tariffs.
In Argentina, 37.2% of the corn crop is now reportedly planted which compares to 34.5% last year. Notably, farmers have planted less corn after last year’s leaf hopper plague with only 6.3 million hectares to be planted compared to 7.9 million last year.
Soybeans are trading slightly lower today after big gains yesterday that brought prices up to the 50-day moving average but have not been quite able to break through yet. If yields are reduced in today’s report it could cause prices to rally further.
Soybean meal is trading lower while soybean oil is higher this morning as both products continue their recent trend. Soybean oil gained over 4% yesterday as trade anticipates tariffs on used Chinese cooking oil. The increase in crush has left us with a glut of bean meal.
Estimates for Today’s WASDE report see soybean ending stocks falling by 15 mb to 535 mb and the average soybean yield falling to 52.9 bpa from 53.1 bpa in last months estimate. World ending stocks are expected to be slightly lowered.
Wheat is mixed this morning with Chicago trading slightly higher while KC and Minneapolis are lower. Overall, wheat has been in a very tight trading range over the past month.
Wheat production seems to be struggling globally as StoneX has just revised their estimate for the Brazilian wheat crop to 7.5 mmt from 7.9 mmt the previous month. The Russian wheat crop is expected to be smaller as well, and wheat conditions in the US are poor.
Estimates for Today’s WASDE report see wheat US ending stocks rising slightly to 813 mb and world ending stocks falling slightly from last month’s estimate. Exports are not expected to be adjusted and there should be few changes overall.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
