Grains were mixed overnight as corn moved lower while soybeans and wheat posted modest gains. In outside markets, equities and crude were sharply higher and the US dollar was on the decline as the world waited for the results on today’s Brexit vote.
In corn, Asian buyers continue to step up after this week’s big price slide. Overnight, South Korea’s FLC bought 130,000 MT of optional origin corn while Taiwan’s MFIG bought 65,000 MT of optional origin corn. However, traders continue to focus on good weather forecasts thru the July 4th weekend which show moderating temperatures and better odds of rain in parts of the dry Western Cornbelt.
With showers expanding in the southwest Midwest and Delta in the next 10 days, current crop stress due to heat and recent dryness should ease in parts of northern Arkansas/Tennessee/central and southeast Missouri/southwest Iowa/Kansas/southeast Nebraska. This should narrow the most notably dry areas to parts of east-central South Dakota, central Iowa, southern/west-central Illinois, and central/southeast Michigan by the end of the 15-day period.
In outside markets, eyes are on the Brexit vote in Britain which will decide whether the country will stay or leave the EU. Recent polls seem to suggest a leaning by voters towards staying in the EU. Voting results are expected after the polls close at 3 PM CDT. Yesterday, EIA crude stocks data showed a 2nd consecutive week of crude inventory draw-downs, albeit the stock declines have not been as big as analyst had been expecting
USDA WEEKLY EXPORT SALES
Act-OC Exp-OC Act-NC Exp-NC
Corn 870 750-1,000 550 200-400
Soybeans 660 400-700 661 600-800
Wheat 462 400-600
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