Ag News

Strong Export Sales for Corn and Wheat This Morning

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Strong Export Sales for Corn and Wheat This Morning

 

Grains Traded Slightly Higher in the Overnight Session

In the overnight session the grains traded slightly higher with December corn up 1 cent, November soybeans up 1 cent and December Chicago Wheat up 1 cent. The U.S. forecast shows some chance for precipitation in the eastern Midwest early next week which could slow an already lagging harvest.

EXPORTERS SELL 384,000 METRIC TONNES OF SOYBEANS FOR DELIVERY TO CHINA DURING THE 2017/2018 MARKETING YEAR.-USDA

Yesterday’s rains favored southern Brazil and more precipitation is expected in the 6-15 day forecast which should ease concerns about dryness in that region. In Argentina however, it was wetter than expected and continues to put pressure on planting which has been delayed due to excessive moisture this season.

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Ethanol production over the last week increased sharply to 1.019 million barrels per day from 967 BPD. This was a strong increase from last week and was 2.1 percent above last year during the same time. Ethanol stocks were recorded at 902 million gallons which was down 2 million gallons from last week’s level. However, the drawdown in ethanol stocks which typically starts in September and continues into November hasn’t really happened yet this year. Ethanol stocks have actually increased since the first of September and are now 12.9 percent higher than last year. This is a development that needs to be monitored and brings into question how robust demand is for Ethanol as year-over-year production increases.

 

Export sales for wheat and corn were strong this morning with both grains beating trade expectations. Wheat sales were up sharply this week and were 75 percent over the four week moving average. The majority of wheat sales were to Mexico, China, Unknown Destinations and Japan. Corn export sales beat expectations but declined 21 percent from last week. Soybeans sales missed expectations, down 27 percent from last week with reductions reported from Unknown Destinations and Costa Rica.

 

Weekly Export Sales-

Actual

Estimated

Wheat

615

250-450

Corn

1,254

800-1,100

Soybeans

1,275

1,300-1,700

 

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