Corn and soybeans were lower overnight while wheat was in positive territory, trying to turn around the price slide of the past week. In outside markets, S&P futures recovered some of their losses from yesterday while Crude Oil recovered slightly from yesterday’s $40 a barrel mark.
On Wednesday, EIA’s weekly ethanol production report showed output was off 52,000 Barrels per day to 956,000 barrels per day. Even so, year-to-date production is up 4% over this same time last year. Also on Wednesday, USDA announced a flash sale of soybeans to unknown destinations, totaling 124,000 MT. This morning USDA announced another flash sale of 132,000 MT to China.
Overnight, Japan bought 125,000 MT of food quality wheat with 68,000 MT of the deal going to the US and the rest going to Canada. However, wheat prices continue to struggle from lack of competiveness in the world market and an ever-increasing US dollar. The US dollar index has reached its highest point since April 2003, which has helped push wheat prices to their lowest level in 5 ½ years.
S&P futures tried to recover from yesterday’s sell-off lead by the energy sector. Fed chair Yeltsen said yesterday she was "looking forward" to a rate hike that will be seen as a testament to the economy's recovery from recession. The Fed's next policy meeting is Dec 15-16.
Oil hit a 7-year low on Wednesday following an EIA report that showed a 10th straight week of climbing crude oil stocks. The U.S. Energy Information Administration reported an increase of 1.2 million barrels in crude supplies for the week ended Nov 27.
WEEKLY EXPORT SALES
Actual Expected
Corn 499 500-1,100
Soybeans 878 800-1,200
Wheat 392 250-500
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