Sept 1, 2016
Grain Marketing Specialist
Corn: 2-5 Higher
Corn market started off on the right foot this morning as we start the new marketing year. Dec corn was up 2 ½ on the overnight session after yesterday’s struggles. Weekly export estimates are 100,000-150,000mt for OC and 700,000-1.1 mmt for New. Ethanol Production decreased by 5k to 1023K barrels/day. This is the 3rd highest production level ever, and very high for this point in the year. Ethanol stocks were up .1 mb to 20.9 mb.
Soybeans: 2-5 Higher
Bean complex had a spark yesterday right off the opening bell, but it didn’t take long for them to settle right back into their funk they have been in lately. But like corn, they pushed higher on the overnight session as Nov beans were up 3 ¾. Soybean export sales estimates for old crop range from 150,000-200,000 mt and 1.1-1.6 mmt for new crop. If we could hang around that upper end of the export estimates, it may lead to a short term bullish trend.
Wheat: 3-5 Higher
Wheat joined the party as we saw most of the wheat complex higher on the overnight session. KC saw respectable gains across the board with most contracts up 5. Minn was mixed as Dec was up around 4 but we had some deferred months down. The big surprise was a sale of 138,000 tons of HRW wheat to unknown. It’s been a very long time since wheat has made the list as HRW is now competitive in the world wheat trade. Wheat Export sales estimates range from 300,000-600,000 mt. This number will be looked at more closely this week as the recent drop in wheat prices has made the US exports more competitive world wide. Egypt canceled its latest wheat tender after fielding only 1 offer again. Traders remain reluctant to make offers following Egypt’s requirements pertaining to ergot.