Corn is trading slightly higher this morning but was lower in the overnight trade. The nearby months are slightly higher while deferred contracts are lower.
Despite the bearish tone in the markets recently, March corn is on track for a slight gain on the week as long as it closes in the green today.
Yesterday’s export sales report was strong for corn and near the upper range of expectations which has been supportive this week.
The USDA’s Crushings and Co-Products report yesterday showed that 481.7 mb of corn was used for ethanol in December which was up 56 mb from a year ago.
Soybeans are trading higher to start the day but were slightly lower in overnight trade. Higher soybean meal is supportive while soybean oil is lower.
March soybeans are on track for a slight loss on the week while the November contract is on track for a small gain. Poor export sales this week pressured prices.
Yesterday’s Fats and Oils report from the USDA showed that total soybean crush for December was 204 mb, 17 mb above this time a year ago and a new monthly record.
Yesterday, non-commercials were estimated to have sold 8,000 contracts of soybeans which would have added to their net short position.
All three wheat classes are trading higher this morning and were mostly higher yesterday as well. Funds are likely short covering as prices more higher.
All three wheat classes are on track to post a higher close for the week. Although little fresh news has supported prices, it is nice to see them off their lows.
The forecast for world wheat stockpiles was increased slightly to 319.7 mmt from 319.3 mmt. Previously, there had been concerns of a shrinking wheat stockpile.
Russia’s grain exports rose by 23% between July 1 and January 31 which is 23% more grain exported than the previous year.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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