In the overnight session the grains traded lower with March corn down ¾ of a cent, January Soybeans down 7 ½ cents and March wheat down 1 cent and pushing into contract lows. The USDA WASDE report will be released on Tuesday the 12th next week.
Ethanol production jumped to an all time high this week to 1.108 million barrels per day, up from 1.066 million barrels per day last week. This weeks production is 8.3 percent above last year during the same week and brings this year’s total ethanol production to 4.1% above 2016. Ethanol stocks also increased last week, moving to 947 million gallons from 926 million. The increase in ethanol stocks reflects a 21.7 percent increase from last year during the same period and we are entering a season when ethanol stocks typically grow.
Russia announced that it will spend roughly $34 million in transportation subsidies to help speed up the export of their record wheat crop. The Deputy Agriculture Minister said that “We are not subsidizing exporters, we are subsidizing producers” and that the measures to not violate their commitments to the World Trade Organization. The transportation subsidies will make it more appealing to move grain from Siberia, Volga and central regions of Russia to markets.
Export sales were up from last week across the board with soybeans posting the strongest sales. Soybeans sales broke the 2 million metric ton mark and doubled last week’s sales. The increase in purchases can be mostly attributed to China but Thailand, Indonesia and Germany also made notable contributions. Wheat sales were within market expectations this week and up 74 percent from last week.
Weekly Export Sales-
|
Actual |
Estimated |
|
|
Wheat |
321 |
250-450 |
|
Corn |
876 |
800-1,200 |
|
Soybeans |
2,015 |
1,000-1,500 |
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