Corn is trading lower ahead of today’s WASDE report with Dec futures falling to a new low early this morning.
Expectations for today’s report are that the USDA will lower old crop corn export sales, but also that they will increase new crop corn ending stocks.
Brazil’s safrinha corn crop, which previously has looked very robust, is dealing with dryness in the South which may impact yields and production.
China has canceled a total of 32 mmt of US corn purchases in the past month as they look to South America for significantly cheaper prices.
Soybeans are trading lower along with soybean oil while soybean meal holds on to some slight gains. Crude oil remains slightly higher.
Brazil reportedly exported 943 thousand mt or soybeans to Argentina in January through April so that Argentina can meet their crushing expectations.
There were rumors yesterday that soybean meal sales for Argentina were switched to US origins, and that is potentially what has been supportive for meal.
CONAB has reported that 96% of the Brazilian soy harvest is now complete, and they are estimating production at 153.6 mmt. Friday’s WASDE report has guesses for Brazilian production at 155 mmt, up from the previous estimate.
Wheat is trading higher today ahead of the WASDE report which is expected to show lower winter wheat estimates than what the Dow Jones survey expected.
Most notably, the high-level meetings between Russia, Ukraine, Turkey, and the UN ended yesterday with no resolution to the Black Sea grain deal in sight.
Winter wheat is rated 44% poor to very poor while the number 1 producer, Kansas, is rated a whopping 68% poor to very poor.
Friday’s WASDE report is expected to show old crop ending wheat stocks at 603 mb, up 5 mb from April due to smaller exports. The USDA will provide a production estimate as well which is projected to be 602 mb for all wheat.
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