Corn is trading slightly higher to begin the day after posting solid gains at yesterday’s close reaching a one-month high of $4.97-1/2 for December.
Yesterday, the USDA reported good export sales of corn in the amount of 71.5 mb for both 23/24 and 24/25 with Mexico picking up the bulk of the business.
In South America, both Argentina and northern Brazil are too dry for planting while southern Brazil is dealing with flooding. 14% of the corn crop in Argentina is planted.
In the US, corn crops experiencing moderate to intense drought rose by one point from last week to 59%.
Soybeans are trading higher this morning along with both soybean meal and oil. November beans tested support on Tuesday and have closed higher each day after that.
The decline in prices of soy products has put pressure on soybeans and yesterday, December soybean oil made a new three-month low. This comes after the contract had 675 deliveries.
Prices found support yesterday after the export sales report showed better numbers than expected, and soybean meal exports were reportedly up 32% from a year ago with limited Argentinian supplies.
Barge shipments down the Mississippi River increased last week with barge rates declining, and soybean shipments were up 30.6% week over week.
Wheat is trading slightly higher along with the rest of the grain complex this morning as the momentum from yesterday’s higher closes carries into today.
Yesterday, there were some escalations in Ukraine with fresh Russian drone attack on two port cities, and news of a cargo ship registered to Turkey hit a mine in the Black Sea near Romania’s coast.
The dry weather patterns in Argentina and Australia may significantly impact their wheat crops, and Ukraine is talking about planting less wheat this season, so global supply may drop slightly.
Russia has raised their 2023 grain harvest forecast to 135 mmt with the wheat crop now expected at 90 mmt.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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