Corn is trading higher this morning potentially breaking its streak of closing lower every day so far this week. The European weather models have turned hotter and drier for July which should benefit prices.
Yesterday’s export sales for corn were slightly better than expected at 1,047k tons which compared to 1,059k last week and 682k a year ago. Top buyers were Mexico, unknown, and Colombia.
On Monday, the USDA will release its updated acreage report, and analysts are expecting corn acres to increase slightly to 95.3 ma from 95.3, but some are anticipating an even larger number.
Soybeans are trading higher as technicals have become oversold and funds likely worry about holding a net short position going into a hot and dry July/August. Both soybean meal and oil are virtually unchanged this morning.
Yesterday’s export sales report saw soybean sales near par with trade expectations at 559k tons which compared to 615k last week and 385k a year ago. Top destinations were to Mexico, the Netherlands, and Indonesia.
On Monday, the USDA will release its updated acreage report, and although a change in soybean acres from 83.5 ma is not expected, there is some wiggle room with trade estimates between 82 and 85 ma.
All three wheat classes are trading along with the rest of the grain complex after Thursday’s drought monitor showed an expansion of drought in the northwest followed by long term forecasts showing less rain this summer.
Yesterday’s export sales for wheat were on the low side at 255k tons which compared to 427k last week and 667k tons a year ago at this time. Top buyers were Japan, Mexico, and South Korea.
Monday’s acreage report is expected to show unchanged wheat acres from the March report at 45.4 million, but some analysts think that number could be lower with acres lost to more corn.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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