Cash Market Creeps Higher
Soybeans Posting Stronger Gains than Corn
In the overnight session the grains traded lower with December corn down 1 cent, January Soybeans down 3 ½ cents and December wheat down 5 ¼ cents. The six to ten day forecast is expecting cooler than normal temperatures in the central and eastern grain belt as well as North Dakota and Iowa. The majority of the grain belt is expected to stay drier than normal during that time with chances for precipitation isolated to Michigan and Ohio.
Exporters sell 135,000 MT of soybean cake and meal for delivery to Philippines during the 2017/2018 marketing year-USDA
Last week’s supply and demand report will most likely continue to weigh on prices this morning. The surprise yield increase for corn was well above market expectations and some analysts are concerned they may raise it further in the coming months. Soybean yield was also above expectations and recent stories about delays in soybean imports in China may also be in the back of traders minds this morning.
The cash market creeped higher last week with Soybeans posting stronger gains than corn. Soybean basis improved nationally by 3 cents with soybean plants up 7 cents and basis at river terminals up 11 cents. The gulf soybean basis increased 7 cents this week. Corn basis increased a penny across the U.S with ethanol plants up 1.5 cents and basis at river terminals increasing 3 cents.
Russian wheat prices fell for a second week in a row as the Rouble lost strength compared to the dollar. Russian wheat fell to $191.5 per metric ton last week, down from $192 the week before. The large Russian harvest continues to put downward pressure on global prices. Russia is expected to export a record 45 million metric tons this marketing year.
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