Grains were higher this morning with soybeans reaching new heights on the rally, briefly getting close to $11 a bushel on front-month July futures. In outside markets, crude oil was also chartering fresh ground eclipsing $50 a barrel, its highest mark since last October.
Soybeans continue to be fueled by a surge in soymeal prices tied to the crop shortfall in Argentina. Meal prices bested $400 a ton in the last session and continue to move higher overnight. With Argentina’s soy crop problem, traders are looking for much lower soymeal exports from the world’s #2 supplier.
Russia's Sovecon agriculture consultancy has raised its forecast for Russia's 2016 grain crop to 107 MMT from a previously expected level of 105.4 MMT, its presentation at a conference in Moscow showed on Thursday. Its forecast for the wheat crop was raised to 64 MMT from 61.1 MMT. USDA currently has the Russian wheat crop at 63 MMT.
Overnight export deals saw Jordan tendering for 100,000 MT of optional origin milling wheat. Meanwhile, South Korea’s MFG walked away from the tender to buy 70,000 MT of corn, citing prices that were too high.
Crude oil continues to climb thanks to EIA data on Wednesday showing a 4.1 million barrel drawdown in crude stocks. Expectations were for only a 2.4 million barrel drop in inventories.
WEEKLY EXPORT INSPECTIONS
OC-Act OC-Exp NC-Act NC-Exp
Corn 1,381 1,000-1,300 246 250-450
Soybeans 456 300-500 150 300-500
Wheat -9 0-200 354 300-500
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