Corn and Soybean Sales Beat Analyst Expectations

Recent decline in prices spurred on purchases

October 2, 2020

Soybeans Make 10-Month Lows Following China Tension, Informa Estimate

Beans fell on the news that President Trump may slap China with additional tariffs as soon as this Friday and that the ZTE deal appears to have stalled.

Adding even more downward pressure, Informa estimates that soybean acres are up 500k to 89.902 million acres. They also estimate production to be 4.409 billion bushels; a record high. The July soybean traded as low as 931.25, the lowest since Aug 31, 2017. Nov beans touched 956.00 during yesterday’s session.

Ethanol Production Increases to One-Month High, Stockpiles Grow

Production is up by 0.012 from last week to 1.053 million barrels a day, the highest since May 11. This weeks production was up 5.1% over last year during the same week. Ethanol production is on pace to meet USDA expectations and now weekly production only needs to average 1% over LY to meet current USDA projections. Inventories rose to 22.174 million barrels, a high last seen on March 30.

Flood Warnings and Heat Advisories for Illinois-Missouri Border

Heat indexes of 105 deg F and high humidity are expected for counties on both sides of the Mississippi in Illinois and Missouri. Further East, there are flood warnings in effect following heavy rainfall that has pushed rivers over their banks. Eastern Iowa still has some flood warnings in effect and could expect small hail with the thunderstorms anticipated in the area later today.

Export Sales

This week’s corn and soybean sales beat analyst expectations as the recent decline in prices spurred on purchases. Soybean sales jumped sharply from last week with sales to Indonesia, Unknown Destinations, Egypt, Japan and Portugal.

	Actual	Estimated	Last Week
Wheat-OC	302.3	150-450	250.9
Corn-OC	936.4	600-900	838.6
Corn-NC	240.2	200-400	418.3
Soybeans-OC	519.6	100-400	164.8
Soybeans-NC	291	100-400	34.7
Soymeal-OC	74.6	50-250	131.2
Soymeal-NC	23.3	0-150	3.9