Chicago Soybean Futures Rose for a Third Consecutive Session on Wednesday
Reuters Poll of Analysts Say the Expectation is for the USDA to Revise Corn Production Higher
In the overnight session the grains were mixed with December corn down ½ a cent, January soybeans up 1 ¼ cents and December Chicago wheat down 2 ½ cents this morning. Soybeans have had a strong three days as traders anticipate the oilseeds production being revised lower in tomorrow’s USDA report. Corn continues to be range bound, but soybeans trend-line support has held over the last week and January soybeans is now only 2 cents away from $10 per bushel.
According to a Reuters poll of analysts, the expectation is for the USDA to revise corn production higher to 14.33 billion bushels from 14.28 billion bushels reported in October. The revision is expected to come from a stronger yield of 172.4 bushels per acre which would be .6 bushels per acre higher than last month. Soybean production is expected to be lowered to 4.408 billion bushels from 4.431 billion bushels in October. The trade is expecting yield to be at 49.3 bushels per acre from 49.5 bushels per acre in October.
Yesterday, the lower Ohio river at Paducah was closed to navigation due to high water following recent rains. The river has risen more than 3 feet in the past week to 16.6 feet and is expected to peak next Tuesday. The Army Corps will be working to remove a rock dike that is preventing vessels from passing over the lowered wicket dam during high water periods, but it is unclear how long the stretch of river will be closed.
In a recent tender by Egypt’s GASC for wheat delivered between December 15th-30th the lowest offers was for Russian wheat at $195.30 and $196.50 per metric ton.
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