CORN

• The corn market is lower this morning and giving up the gains from yesterday after hitting resistance near yesterday’s highs, with increased farmer selling reported as prices neared 400 in the September contract.
• Ethanol production increased 4.9% last week from the week prior, and up 3.4% year over year on improved margins. Total corn use was estimated at 109.78 million bushels, and while production increased, ethanol stocks fell 2% week over week.
• Brazil’s corn export prices are said to be firm and near $183 per mt, while Ukraine’s prices are around $200 per mt. US export prices are competitive at this time at $187.
• The USDA will report weekly export sales later this morning. Current estimates for new corn sales range between 500,000 – 800,000 mt for old crop, and upwards of 400,000 for new crop.

SOYBEANS

• Soybean futures are trading lower this morning as they follow through on yesterday’s weakness. Bull spreading continues between spot August contract and the deferred contracts as the cash market continues to reach for fresh supplies. Soybean meal is weaker this morning, while soybean oil is firm.
• Rumors circulated yesterday that China was in the market and bought some cargoes of US soybeans off the PNW for late summer delivery. These rumors arose following reports that China had recently purchased upwards of 4.5 mmt of Brazilian soybeans.
• At this time, Brazil’s export prices are near $423 per mt, reportedly lower on increased farmer selling and a slowdown in Chinese demand. US soybean export prices out of the Gulf are near $436 per mt.
• Weekly soybean export sales will be reported later this morning. Current estimates for new sales range between 150,000 – 600,000 mt, compared to 208,000 last week.

WHEAT

• The wheat complex is mixed this morning with Minneapolis leading Chicago higher, while the KC contracts are mixed, with the front months gaining on the deferred. Talk of increased demand for high protein wheat is lending support to the Minneapolis contracts.
• Egypt issued its largest tender in two years, with Russia filling the majority of the 770,000 mt, and Bulgaria supplying the balance. Algeria was also reportedly in the market buying wheat, with eastern Europe and Russia filling the order.
• Weekly wheat export sales out later this morning are estimated to come in between 225,000 and 600,000 mt. This compares to total new sales of 240,000 mt reported last week.

Author

Scott Masters