Corn follows the wheat market lower at midday. Improving weather in South America contributes to the pullback in prices.
Weekly export sales for corn came in at 59 mb, which was in line with expectations. Year-to-date commitments are now at 1.236 bb, which is up 39% from last year.
Average daily ethanol production for the week ending November 15th was a record high at 1.110 million barrels.
Corn used for ethanol came in slightly lower from last week at 110.3 mb but was up from 105.2 mb for the same week a year ago.
Algeria purchased 240,000 mt of South American corn.
Soybeans remain weaker at midday on lack of China demand and improving South America production prospects.
Weekly export sales for soybeans came in above expectations at 68 mb. Year-to-date commitments are at 1.161 bb, which is 9% higher than last year.
China and Brazil signed 40 economic agreements yesterday as their relationship continues to build. Looking ahead, US exports to China could continue to be negatively affected as China looks for other agriculture suitors.
The US share of soybean exports to China were down 13% year-over-year in the Jan-Oct timeframe. China continues to be a large buyer of South American supplies as the possibility of US tariffs loom.
Wheat reverses lower at midday on large Argentine wheat crop estimates.
Weekly export sales for wheat came in at a four-month high of 20 mb. Year-to-date commitments are now 544 mb, which is up 23% from a year ago.
The Rosario Grain Exchange estimates Argentine wheat production to be 30% higher from last year at 18.8 mmt. This would make for the fourth best crop out of the last twenty years if it holds true.
War tensions between Russia and Ukraine continue to be prominent which will offer some support to prices, but upside potential may be limited on larger crop estimates in South America.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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