In the overnight session corn traded lower by 1 1/2 cents, soybeans pushed 2 1/2 cents higher and wheat in Chicago fell by 2 1/4 cents. The U.S dollar is continuing lower today after two days of selling and crude oil is down 39 cents.
This week’s export sales did little to impress with old crop corn and soybeans below expectations and wheat recording cancellations of 20,400 metric tons. New crop sales were mixed with corn showing export cancellations of 54,800 metric tons, soybeans beating analyst expectations by booking 347,000 metric tons and wheat recording sales of 364,000 metric tons which was within analyst expectations.
Yesterday Informa trimmed their Winter Wheat forecast to 1.481 billion bushels from 1.486 billion bushels in their previous forecast. Despite cutting wheat production, Informa raised corn and soybean production in Brazil and Argentina. In Brazil and Argentina soybean production was revised 1 million metric tons higher to 95.5 MMT and 60 MMT respectively. Argentina corn was also increased by 1 million metric tons to 60 MMT. This is another example of the South American crop putting more pressure on U.S. prices as good growing conditions keep analysts revising production higher.
Ethanol production increased this week by 3,000 barrels per day to 972,000 bpd. This is the third straight week of firm production registering well over last year’s production levels and the four year average. Ethanol stocks declined again this week, falling 29,000 barrels to 20.07 million barrels. Cumulative yearly production is running 4.8 percent ahead of last year’s levels.
