Morning Market Insight
Grain Marketing Specialist
Corn as of 7:45 Up4
U.S. corn exports forecast at 35-40 mbu per week; sorghum estimated at 2-4 mbu. Ethanol margins: $0.33 per gallon—unchanged from last week but below $0.35 in 2015. USDA came out with baseline estimates for 2017 acres with corn down 4.5million acres from last year. Total acres are estimated down 4.9 million for all planted acres.
Soybeans as of7:45: Up 8
USDA came out with baseline estimates for 2017 acres bean acres up 1.6 million acres putting estimates for total acres at 84.6 Million acres of beans. South American weather remains mostly favorable but still too early to have significant impact. Nearby demand is solid for both exports and crush but there are some concerns about the export program as we go into the winter months. China plans to reduce some of its farm land to expand grassland and forests to ensure sustainable development of farming sector, according to government officials China wants to reduce farm acres by 5 million hectares by 2020.
Wheat as of 6:45: MW Down 7 KC Up 2
USDA came out with baseline estimates for 2017 acres wheat down 1.7 million acres from last year pegging the ’17 planted wheat acres at 48.5 million. Australian harvest looks to be large with lower quality and lower protein. Yields of 75 bushels an acre being reported versus an average yield of 30 bushels per acre most years. Argentine harvest is still 2 weeks away.