Corn is trading slightly higher this morning after selling off sharply yesterday with the December contract reaching as low as 10 cents above the February low. Pressure came from seemingly improved weather and option expiration which is today.
The export sales report was pushed back until later this morning, and estimates for corn sales are between 700k and 1,300k tons with an average guess of 1,000k tons. This would be slightly lower than last week’s but well above last year’s number.
The largest trading company of China’s in the ag complex agreed to sell its Chicago grain terminal to coop, Growmark. China has said it is still invested in its other US businesses but wants to relocate citing high crime and high costs.
Soybeans are trading higher this morning and are bull spread with the majority of gains in the front months. This comes after yesterday’s selloff where November soybeans closed at their lowest point since August 2021. Soybean meal is trading higher while soybean oil is lower.
In today’s export sales report, soybean sales are expected to come in between 400k and 900k tons with an average estimate of 588k tons. This would be above last week’s sales but below those of last year at this time.
Prices were driven lower yesterday by the weather forecast which expects rain in the Corn Belt over the weekend and showed some small showers a few days ago, but the extended forecast is hot and dry. It seems like the trade isn’t willing to be concerned until those conditions are upon us.
All three wheat classes are trading slightly higher this morning as the July wheat contract has now given back essentially all of its gains from the massive rally which started in April. Harvest pressure in the US is offsetting the fact that global production is expected to fall.
In today’s export sales report, wheat sales are expected to be in between 200k and 550k tons with an average guess of 338k. This would be well above last week and higher than a year ago at this time as well.
In Russia, SovEcon has revised wheat production lower again at 127.4 mmt which would compare to 144.9 mmt the previous year. This production decrease may be priced in at this point considering that there were reports of dry weather and frosts causing problems months ago.
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