Corn prices continue to trade higher at midday, supported by news of Japan and US trade deal which is estimated to include $8 billion of US agricultural purchases by Japan.
Weekly corn export sales came in at 54 mb, which were in line with expectations. Year-to-date commitments total 2.760 billion bushels, up 27% from a year earlier.
The USDA reported that a previous sale of 135,000 mt of US corn to China was confirmed to be incorrect.
Weather remains friendly across the Corn Belt with additional precipitation chances in the 8-14 day forecast over the western belt.
Soybeans remain slightly higher at midday as prices are finding technical support along with optimism of trade deals boosting demand.
Weekly export sales for soybeans totaled 15 mb, which was on the low end of trade expectations. Year-to-date commitments sit at 1.867 billion bushels, which is up 13% from last year.
A Chinese buyer has reportedly signed a deal this week with Argentina to purchase 30,000 mt of soybean meal and animal feed. The buyer noted lower prices as the main reason for the agreement.
China is urging hog producers to manage their capacity levels to prevent falling prices. The Minister of Agriculture is also telling producers to find ways to reduce the amount of soybean meal in feed rations.
Wheat prices have pulled back at midday, pressured by harvest and the ongoing wheat tour which is expected to release final results later today.
Weekly wheat export sales were above expectations at 26 mb. Year-to-date commitments total 329 mb, up 12% from a year ago.
Argentina’s wheat production is seen increasing 1% to 20.2 mmt on improved soil moisture conditions.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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