Grains continued to inch lower overnight with corn down 1, beans off fractionally and wheat down 2.
USDA reported 264,000 MT of soybeans sold to China, 132,000 MT to unknown destinations. They also reported a 150,000 MT of corn to Mexico and 104,202 MT of Hard Red Winter Wheat to Mexico.
Yesterday after the market closed USDA released their crop progress report. The soybean crop was at 36% harvested up from 22% last week but behind the 5-year average pace of 43%. Meanwhile, corn gained little ground going from 17% last week to 22% this week, and well below the 37% normal pace for this time of year.
Tomorrow will bring fresh input from USDA on the supply and demand situation. Traders look for fractionally higher production figures in the US and a slight cut to ending stocks thanks to smaller than expected old-crop stocks from USDA’s September Quarterly Stocks report.
Brazilian farmers will likely produce a smaller amount of corn and soy in the 2017/18 season due to less favorable weather than the prior crop year, food supply and statistics agency Conab said on Tuesday. In its first forecast for the 2017/18 crop, Conab estimated Brazilian grain production at between 224.1 million tonnes and 228.2 million tonnes, compared with 238.5 million tonnes in the prior cycle. The lower end of the range would represent a 6 percent drop in output. "The highly favorable climate conditions that contributed to a record grain output last season are unlikely to be repeated," Conab said in a statement.
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