In the overnight session the grains were mixed soybeans showing the most strength as traders anticipate a production revision lower in the WASDE report released today. December corn is trading unchanged, January soybeans are trading 3 ¾ cents higher this morning and are now above $10 per bushel. December Chicago wheat is up ¼ penny this morning.
Ethanol production improved only slightly this week with the Wednesday EIA report showing last week’s production at 1.057 million barrels per day, up from 1.056 million barrels per day last week. Ethanol stocks decreased slightly to 21.345 million barrels but continue to be at record levels for this time of the year. Since the beginning of the marketing year ethanol has been produced at a strong rate, averaging around 3.3% above last year’s levels.
It is taking longer to issue safety certificates for non GMO soybeans for import into China and at least a couple vessels are without certificates in China ports. The delay in receiving these certificates can be very costly as traders suffer from higher demurrage costs for each day the ship sits without being unloaded. Though this delay has impacted only a few ships recently it is changing the way traders are sourcing their soybeans, favoring the Gulf of Mexico over the Pacific Northwest because the longer transit time provides more lead to receive the safety certificates on time.
Export sales were strong for corn and wheat this week, but below expectations for soybeans. This weeks wheat export sales were a marketing year high and beat expectations sharply. This weeks wheat sales was boosted due to a large Iraq order of 450,000 metric tons. Corn sales were also up sharply from last week, with Mexico accounting for nearly half of the sales. Mexico accounted for nearly all the new crop corn sales recorded this week. Soybean sales were down 39 percent from last week and missed analyst expectations.
Weekly Export Sales-
|
Actual |
Estimated |
|
|
Wheat |
781 |
350-550 |
|
Corn - OC |
2,364 |
1,200-1,600 |
|
Corn - NC |
574 |
500-700 |
|
Soybeans - OC |
1,160 |
1,300-1,800 |
|
Soybeans - NC |
4 |
0-50 |
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)
