Markets Stabilize in Light Volume
Export sales came out within analyst expectations today for corn and soybeans. However, wheat provided a bit of a surprise.
ALERT: Grain Markets close at central today, markets re-open at
Corn and soybeans have finally found bottom after 2 days of follow-through selling. Overnight corn futures are up ½ cent, soybeans up 3, and Chicago wheat up 3.
Export sales were released this morning showing that old crop corn and soybean sales met expectations while wheat sales came in better than expected. Despite meeting analyst expectations this week the 290,000 MT of 13/14 corn sales and 40,600 MT of 13/14 soybean sales wasn’t enough to move either grain any further ahead of pace to meet USDA forecasts. According to our models, corn slipped to 137 million bushels ahead of pace, down 7 million bushels from last week’s projections. Our soybean models also slid 6 million bushels to 102 million bushels ahead of pace to meet USDA expectations. New crop sales for both corn and soybeans were adequate with both grains recording sales within expectations. Wheat sales of 567,500 MT beat analyst expectations with a significant amount of sales going to Brazil. Strong wheat sales may provide some support to the market which has experienced hard directional selling since the beginning of May. The USDA issued an announcement after the export report was released that a one day reportable sale of 176,000 MT of corn was sold to Egypt for new crop delivery.
Port workers in Argentina have begun an indefinite strike at the key grain terminal of Rosario. Argentina is the world’s number 1 exporter of soymeal livestock feed and third biggest supplier of corn. U.S. soymeal prices are currently leading the soy complex higher, helped out by the Argentinian news. South American port strikes are typically short lived and will not provide lasting support to the soy complex.
Yesterday, we saw some international tenders announced from a corn processing association out of Korea for 55,000 metric tons of food grade corn and a Taiwan sugar corporation looking to buy 20,000 metric tons of U.S. corn and 15,000 tons of soybeans to be sourced from either the United States or South America.