Corn is trading slightly higher this morning and has recovered from its overnight lows that brought the March contract below the 50-day moving average. Corn prices remain in a relatively tight range.
Last night, there were reports that soon to be President Trump is planning on tacking an additional 10% tariff on China and will also place 25% tariffs on both Mexico and Canada. The news caused the dollar to jump which is bearish for commodities, but prices have stabilized.
Yesterday’s export inspection report showed corn inspections at 903k tons for the week ending November 21 which on the higher side of expectations and compares to 873.7k last week and 419.9k a year ago.
Soybeans are trading higher this morning and also recovered from overnight lows that were a result of the tariff news. Soybean oil is leading soybeans higher while soybean meal is slightly lower to start the day.
The recent volatility in the soy products has caused processing margins to tighten with the main issue being lower soybean oil prices that have fallen by 6.55 cents since their highs on November 11.
Yesterday’s export inspections report showed soybean inspections at 2,102k tons which was on the higher side of expectations and compares to 2,266.4k last week and 1,574.1k last year.
All three wheat classes are trading higher this morning with KC wheat leading the way up. The dollar spiked overnight but has since fallen into negative territory which is allowing wheat prices to move higher.
Yesterday afternoon, the USDA released its crop progress report which showed that 97% of the winter wheat crop has been planted, that 89% is emerged, and that the good to excellent rating has increased to 55%. Last week the rating was at 49%, and the trade estimate for this report was at just 51% good to excellent.
SovEcon has cut their export forecast for the 24/25 wheat crop to 44.1 mmt from 45.9 mmt citing stricter export quotas. In the second half of the year, the country tends to limit wheat exports to protect domestic supplies.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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