Grains continued to grind lower overnight with soybeans suffering the biggest loss. Outside markets were also weaker as crude oil hit fresh lows, approaching $40 a barrel.
The International Grains Council on Thursday raised its forecasts for global corn production in the 2016/17 season, largely reflecting improved crop prospects in the United States. World corn production was upwardly revised to 1.017 billion tonnes, up from a previous projection of 1.003 billion and the prior season's 968 million.
The IGC also raised its forecast for global wheat production in 2016/17 to 735 million tonnes, up from a previous projection of 729 million but still marginally below the prior season's 736 million.
On Thursday, USDA’s export sales report was disappointing for soybeans, but flash sales announcements by USDA added 457,000 MT to potential future sales. Year-to-date new-crop soybean deals stand at 9.7 MMT well off of recent years where the US has booked 15 MMT by this time of year.
Crude oil continues to slump on oversupply fears. Along with oversupply in oil, there continues to be a gasoline glut worldwide. Investors will be watching for the weekly U.S. drilling report due later Friday for clues to the supply situation. Previous data from industry group Baker Hughes has shown an increase in oil drilling activities in the U.S. for four consecutive weeks.
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