Grains headed lower in the overnight session with wheat leading the complex to lower on improved crop ratings. In outside markets, crude oil was higher as were stock index futures.
On Tuesday, USDA pegged the US wheat crop at 59% good-to-excellent versus expectations of 57% from analysts. That is up above 44% at the same time last year and the five-year average of 42%. However, key HRW states of KS, OK & TX were all lower on the week seeing crop condition ratings slip over last week.
In Brazil, private consultant Celeres raised their soy and corn crop forecast, pegging soybeans at 99.9 MMT versus their previous forecast of 99.1 and lifting corn to 87.5 MMT from a previous forecast of 87.1.
Corn found modest strength on Tuesday, gaining ground on soybeans as traders unwound short corn/long bean spread trades. Corn rose to its highest in almost a week on talk U.S. farmers may plant more soybeans instead of the corn sowings they previously planned. Soybeans were lower, in turn weakened by prospects of larger U.S. sowings, but saw some support from rain hindering Argentina's harvest.
In oil, API weekly data showed crude oil stocks were down 4.3 million barrels versus trade estimates which expected a 2.9 million barrel build. This is the first time weekly data has shown a drop in crude stocks since mid-February. EIA official government data will be released at 9:30 CDT, with expectations for a 3.15 million barrel build.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a dba of Foremost Trading LLC (NFA ID: 0307930)
