In the overnight session the grains are trading higher again with March corn up ½ a cent, March soybeans up 2 ½ cents, March Chicago wheat down 2 ¾ cents and Kansas City wheat down 2 cents this morning. The February WASDE report will be released at 11 AM CST today.
Ethanol production increased this week by 311 million gallons a week to 1.057 million barrels/day. This weeks EIA report shows this week’s production is on par with last year during the same week. Over the last six weeks, ethanol production has run 1 percent behind last years pace. Ethanol stocks increased last week to 987 million gallons from 968 million gallons. Seasonally, it is typical to see stocks continue to grow until March as the summer driving season begins to utilize more ethanol. Ethanol stocks are currently the third highest of all time.
On Thursday the Brazilian government lowered their forecast for 2017/18 corn production to 88 million metric tons from 92.34 million metric tons in their January forecast. The reduction is a result of growing conditions in the southern part of the country and a reduction in planted acres for the second corn crop. Conab increased its soybean production estimate to 111.55 million metric tons from 110.4 million in their January report.
Export sales were strong this week with all three grains meeting expectations on the strong side of the range. Wheat export sales were up 36 percent from the previous week booking 393,400 metric tons. Corn sales were down 4 percent from last week but managed to book 1,769,600 metric tons which was well above the four week average. Today the Agricultural Ministry of China increased their 17/18 forecast for corn imports by 300,000 metric tons to 1.5 million metric tons. The revision in China’s forecast is a result of Beijing’s probe into alleged sorghum dumping by the United States. Soybean sales were up strongly from last week with 743,200 metric tons sold.
Weekly Export Sales-
|
Actual |
Expectations |
|
|
Wheat |
393 |
200-500 |
|
Corn |
1,769 |
1,300-1,800 |
|
Soybeans |
743 |
400-700 |
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