Corn futures continue to struggle at midday on bearish weather patterns and high production estimates in South America.
Ethanol production came in at 318 million gallons, up 3.6% from the same week last year but was down from 326 million gallons last week. Ethanol stocks creeped higher to 24.4 million barrels, up from 23.4 million barrels last year.
AgroConsult has raised their estimate for Brazil’s safrina crop after a recent survey. The group now pegs Brazil’s safrina corn crop at 123.3 mmt, up from their previous estimate of 112.9 mmt.
Soybeans are lower at midday, pressured by a favorable weather outlook for growing conditions and lack of bullish news.
China and Brazil are reportedly working on an agreement exclusively for soy exports to meet China’s import needs.
According to Anec, Brazil’s soy exports are now seen reaching 14.99 mmt in June, up from the groups previous estimate of 14.36 mmt.
Wheat prices remain weaker at midday on pressure from the rest of the grain market and geopolitical risks cooling off.
Sovecon has raised their wheat production estimate for Russia to 83 mmt, which is now in line with the USDA’s estimate.
Egypt reportedly bought between 300-400k mt of wheat from Russia, Ukraine and Romania over the past couple of weeks. This may create more downside pressure in wheat prices as global competition stiffens along with the ongoing tariff situation.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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