Corn traded lower at midday, with pressure from the upcoming weather forecast outweighing support from recently announced trade deals.
Corn traders remain uncertain about the potential impact of the overnight trade deal with Japan, given that Japan is already a major buyer of U.S. corn, leaving questions about how much additional demand the agreement will generate.
The South Korean trade team is scheduled to visit the U.S. this coming Friday. Recently, South Korea has been purchasing corn from South America, but a newly signed deal could potentially shift their corn purchases back to the U.S.
Corn conditions continue to indicate potential for record yields, with forecasts suggesting yields in the 180s bpa remain possible, depending on August and September weather.
Ethanol production for the week ending July 18th was slightly decreased to 1,078 thousand barrels per day from 1,087 the previous week and also marking a 1.6% decline YOY. The daily corn usage reached 15.37 million bushels in this production process.
Soybeans are trading higher at midday as traders continue to digest the details of several trade deals announced late yesterday and overnight, which have fueled hopes for rising demand. Soybeans and soybean oil are posting gains while soybean meal trades mixed.
The deal struck yesterday between the White House and the Philippines is expected to boost U.S. soy exports to the country, offering some support to today’s market.
The soybean crop is expected to benefit from favorable rainfall across much of the Midwest over the next two weeks, except in the Great Lakes states, where below-normal precipitation is forecast.
Soybeans continue to face some pressure as crop condition ratings remain strong, with 68% rated good to excellent—the highest since 2020. Last week’s 2% decline was largely due to Kansas and North Dakota, though both regions have since received beneficial rainfall.
Wheat prices turned lower by midday Wednesday, showing little to no reaction to the newly announced trade deals.
The Wheat Quality Council completed the first day of their spring wheat tour, surveying 171 fields from Fargo to Bismarck, North Dakota, with an average yield of 49.8 bpa.
“Russia’s Agriculture Minister revised the country’s wheat production forecast to 88–90 million metric tons, down slightly from the earlier estimate of 90 million. Wheat export projections were also lowered to 43–44 million tons, compared to the previous forecast of 45 million.
According to analyst Argus, the French wheat crop is projected at 33.4 mmt, a 30% increase compared to last year.
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