This morning the grains are trading higher with corn up 1 ½ cents, soybeans up 9 cents and wheat up 1 cent. Soybeans are trading higher on concerns about supply disruptions out of Brazil due to the truckers who are protesting higher fuel prices by blocking main roads across Brazil. Traders are concerned that the lack of transportation will leave small towns without fuel to power combines during the harvest, and generally delay the movement of grain to ports.
Yesterday export inspections were better than expected for both corn and wheat. Corn recorded 900,965 metric tons of grain leaving the country which was higher than market expectations which ranged from 700,000-850,000 MT. Wheat export inspections were recorded at 501,458 metric tons which were around 100,000 above the high side of expectations. Soybean showed 961,749 metric tons were inspected for export which was down from 1.3 million metric tons inspected last week and on the low side of analyst expectations.
Egypt’s GASC announced yesterday that they are seeking 55,000-60,000 metric tons of U.S origin wheat after prices declined late last week. Egypt canceled a tender for U.S. wheat last Wednesday citing that prices were exaggerated. Since the close of Wednesday’s session, wheat prices have fallen 22 cents.
The weekly Texas crop conditions report showed that the percentage of wheat crop rated good-to-excellent was 44 percent, unchanged since last week. Poor-to-very poor was also unchanged at 14 percent.
