Corn and Wheat Pressured in the Overnight

USDA Reports Flash Sales this Morning for Soybeans

October 2, 2020

Corn and wheat continued to be pressured overnight while soybeans held on to some minor gains going into the day session.

USDA reported a 132,000 MT sale of soybeans to unknown destinations for 2016/17.

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Yesterday saw weak soy crush data released by NOPA for April which helped stall the soy rally that at one point had reached a 10-cent advance. According to NOPA, soy plants crushed 139 MB of soybeans in April, off from 147 for the same month last year and well below trade expectations of 145. Year-to-date crush data is up 0.8% from the same 8-month period last year, but USDA expects crush for the entire year to grow by 2.1%.

After the close of trading, USDA crop progress data showed a huge gain in plantings. Corn planted hit 71% vs 47% last week, and now sits 1% above the 5-year average pace for the first time this season. Soybeans also advanced sharply hitting 32% vs 14% last week and on par with the 5-yr average. For wheat, crop conditions slipped to 51% good-to-excellent from 53% last week. Most of the losses occurred in MT, IL & SD.

In export markets, foreign prices have generally held firmer as US prices have slipped in the past week. Corn from Argentina FOB is now $9/MT above US prices vs last week at only a $3.8/MT premium to US prices. Wheat vs France was the only major weakening this week as French prices have fallen harder over the past week than US prices.

WORLD EXPORT PRICE SPREADS RELATIVE TO US

Crop	Country	Today	Last Week	Last Year
CRN	ARG	+$9.0	+$3.8	+$7.0
CRN	BRZ	-$15.1	-$17.3	-$8.5
CRN	EUR	+$5.4	+$4.7	-$15.1
SBN	ARG	-$8.0	-$10.3	-$1.7
SBN	BRZ	+$4.4	+$0.5	+$8.3
WHT	ARG	+$17.2	+$15.4	+$17.5
WHT	EUR	-$16.9	-$14.2	-$46.5