Corn is trading lower this morning but the May contract has found some support at the 200-day moving average. Yesterday’s export inspections were strong and export demand has been firm, but funds seem to continue to sell.
Yesterday’s export inspections report saw 1,659k tons of corn inspected for export which compared to 1,844k the previous week and 1,326k tons a year ago. Corn demand has remained firm despite tariff fears.
Brazil has decided to increase the blend of ethanol in the country’s gasoline to 30% from the current level of 27.5% in order to help the local industry with increased demand. Brazil is the world’s second largest producer of ethanol.
Soybeans are trading higher this morning but have been relatively rangebound since the beginning of the month. World soybean values are higher which is supportive, and Chinese soybean stocks are said to be tight. Soybean meal is lower while soybean oil is trading higher.
Yesterday’s NOPA crush report saw US soybean crush reduced to 177.87 million bushels from 187.9 mb in January. This was well below the average trade estimates and was also down from February crush a year ago.
Yesterday’s export inspections report saw 647k tons of soybeans inspected for export which compared to 854k the previous week and 700k tons a year ago.
All three classes of wheat are trading higher this morning as dry weather across much of the winter wheat growing areas remains a concern. Russia may also have losses in production due to weather which could tighten the world balance sheet.
Yesterday, the USDA released its weekly crop report which showed good to excellent ratings for wheat in Kansas down to 48% from 52% the previous week. The wheat ratings in Texas and Oklahoma were unchanged at 28% good to excellent and 46% respectively.
Yesterday’s export inspections report saw wheat inspections at 493k tons which compared to 242k the previous week and 394k tons a year ago at this time.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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