Corn is trading lower again after a sharp selloff yesterday that affected the entire grain complex.
Last week’s WASDE report that estimated US corn production at 2.22 billion bushels while also estimating Brazilian corn production at a record high has had a big bearish effect on grains.
US export sales will not have much of a window as Brazilian corn is nearing harvest and is expected to be 130 mmt.
The Black Sea grain deal expires tomorrow and so far there has been no resolution between the countries.
Soybeans sold off sharply yesterday led lower by over a 4% decline in July soybean oil. Soybeans, soybean meal and oil are all lower again this morning.
Soybean oil has been under pressure from the palm oil market which has been floundering as demand from India wanes and supplies remain stout.
In India, oilmeal exports have fallen significantly with soymeal exports falling to 177,243 tons from 235,233 tons in March.
Conditions in Nebraska and Kansas remain dry but have received some showers lately but overall, a record soybean crop is possible in the US barring a weather event.
Wheat is mixed this morning with Chicago lower but KC and Minn slightly higher as the HRW wheat tour finds the crop in Kansas badly damaged by drought and cold.
Argentina’s 23/24 wheat output is being estimated at 18 mmt which would be a 45% increase year over year, and they have expanded acres by 3%.
Crop scouts in Kansas are projecting the average yield for the northern part of the state at just 29.8 bpa, the worst for the tour’s first day since 2003.
With no extension in sight for the Black Sea deal, the corridor is now nearly empty with only seven outbound vessels left in safe passage.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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