In the overnight session the grains traded lower with December corn down ½ a cent, November Soybeans down 3 cents and December Wheat down 1 cent. Weather forecasters are watching the Northwest grain belt for harvest delays early next week.
The Grain Stocks report will be released today, September 29th at 12 PM. Traders will be focusing on this report as the final carryout number for the 2016-2017 marketing year. With the marketing year complete and last years use set, the remaining stocks will give the clearest picture of 16-17 production. In the last 17 September stocks report, the USDA has revised its crop production estimate in 15 of them which makes this quarters grain stocks more difficult to predict.
Here are the expectations for the Grain Stocks report. In a Reuters poll of analysts the average trade guess for soybean stocks on September 1st is 338 mbu with guesses ranging from 321 mbu to 363 mbu. Analysts are expecting corn stocks to be at 2.353 billion bushels and wheat stocks at 2.205 billion bushels.
Wheat production in Australia will be impacted by the high temperatures and low soil moisture during the spring this year. The hot dry conditions across Australia have analysts polled by Reuters estimating a production at 20.015 million metric tons which is below the USDA’s September WASDE report of 22.5 MMT and a long ways from last years production of 35.56 million metric tons. Australian wheat prices have been rising and are already above offers being made for U.S. cargoes in Asia which should help North America export sales this marketing year.
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