Corn is trading higher this morning as optimism continues over various trade deals either being completed or in the works which could improve demand for US grains. Prices have backed off the overnight highs slightly.
US corn used for ethanol came in at 449.4 million bushels in May which was up from April but down 1.3% from a year ago at this time.
Due to the 4th of July holiday, the Commitment of Traders will not be released until Monday, but funds are estimated to have bought 15,500 contracts of corn yesterday and an estimated 29,500 contracts total over the past 5 days.
Soybeans are trading higher along with corn on bullish momentum that comes despite beneficial weather recently through most of the Corn Belt. Soybean meal is higher while bean oil is lower along with crude oil.
In India, palm oil imports shot higher by 61% to hit an 11-month high for the month of June as a result of lower domestic inventories. This is bullish for all veg oils.
Estimates for today’s export sales report see soybean sales in a range between 400k and 900k tons with an average guess of 594k tons. This would compare to 559k a week ago and 320k tons the previous year.
Wheat is mixed to start the day with Chicago and KC slightly lower but looking to turn positive while Minneapolis is higher. Falling crop conditions have helped markets move higher despite the ongoing winter wheat harvest.
More rain is expected to fall this week in soft red wheat areas which could delay harvest at times. Europe is currently experiencing a heat wave which could slow harvest there as well.
Estimates for today’s export sales report see wheat sales in a range between 200k and 60ok tons with an average guess of 334k tons. This would compare to 255k last week and 805k tons the previous year.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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