January 7, 2016
Grain Marketing Specialist
Export Sales out this morning.
Corn: Down 3
Export sales below the trade guess at 10.0 million bushels. Ethanol production was at 996k barrels/day up from last week’s 992k. Stocks were also up to 21.1k barrels vs 20.2 last week (chart below). Crude Oil hit 7 year lows yesterday, putting pressure on the ethanol market. Informa raises Argentina corn production to 22mmt from 21mmt; Brazil is at 81.3mmt.
Soybeans: Down 5
Informa estimates Brazil production to be 101mmt. SA weather continues to be favorable. Brazil’s stock market dropped into 7 year lows. China stock market trips safety stops again and trade is halted on selloff. Export Sales were within the range of 14.7-25.7 million bushels at 23.5 million.
Wheat: MW down 2, KC down 5
Export sales came in well below the expected range 7.3-14.7 million bushels at 2.8 Million. Argentina is estimated to be having some severe problems making protein. Egypt says they will enforce a zero tolerance policy for ergot found in wheat import shipments.