Corn is trading unchanged to slightly lower to start the day after significant pressure was seen yesterday. December corn remains in its recent range and has support at its 50-day moving average which is at $4.04. Corn is now on track for a lower weekly close.
Yesterday’s export sales report was average for corn with an increase of 33.4 mb of sales for 24/25 which was near the median of analyst expectations. There has been some concern over the lack of an export program for corn sold to China.
In Argentina, the Buenos Aires Grain Exchange released its weekly update for the 24/25 corn crop and sees the planting area unchanged at 6.3 million hectares and planting progress jumping to 7.3% complete.
Soybeans are trading slightly lower this morning after a very slight loss yesterday, but November futures are on track for a gain on the week. Over the past three days the contract has closed right at the 50-day moving average and remains rangebound. Soybean meal is higher while bean oil is lower.
In India, palm oil output is expected to triple within 6 years as planted area is set to increase and more plantations become mature for harvesting. This could help the country become less reliant on seed oil imports for their domestic needs.
In Brazil, some rains have fallen in the southern regions, but the larger growing areas are in the central region of the country and are suffering from extremely low soil moisture levels with rain not in the forecast until October. It will be crucial for those rains to materialize.
All three wheat classes are trading higher this morning and are led by Chicago wheat. Wheat was under pressure from sellers this week after being technically overbought and is set to lose about 26 cents on the week at this rate.
Yesterday’s wheat export sales were poor at 9.0 mb for 24/25 and 0.4 mb for 25/26. This was well below the average trade guess and below last week’s sales. Russian wheat offers remain the most competitive.
In Argentina, some wheat farmers are reportedly abandoning their wheat fields due to extremely dry conditions and poor soil moisture levels. The country has received some rain in the South, but the northern regions have been dry along with Brazil.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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