January 6, 2016
Grain Marketing Specialist
Weekly Ethanol Production out today.
Possible nuclear test in North Korea pushed much of Asia’s markets lower overnight.
Corn: Down 1
Argentina reportedly will increase ethanol blend from 10% to 12.0-12.5%. The country’s annual ethanol demand is around 5 million barrels with 60% from corn-based ethanol. November US ethanol corn grind considered low at 435 mbu, little changed from LY’s 454 figure. Brazil reported record corn exports for the month of December, the chart below shows corn exports vs the US since 12/13.
Soybeans: Down 4
Argentina expects a near 60 MMT soybean crop, USDA is at 57. November US soybean crush came in at 165.8 or about 1 mbu below the trade average. Exporters association Anec in Brazil projects record soybean exports of 57mmt in the coming year, up 4mmt from last year. The chart below shows soybean exports vs the US since 12/13.
Wheat: MW down 1, KC down 3
UkrAgroConsult raises Ukraine’s wheat export forecast to a record 14 MMT, surpassing the previous high of 12.6 set back in 08/09. India’s wheat output likely to fall short of 90 MMT for the 2nd consecutive year –unusually warm and dry winter. US flooding has led to concerns about winter wheat and shuttering some southern US elevators until drier.