Soybeans gained for a fourth consecutive session overnight, trading close to a two year high as the market was affected by a forecast of a dry growing season. Crude oil was down on profit taking, following a third straight week of falling inventories.
U.S. corn export sales were well above expectations for old crop this morning. Meanwhile, wheat sales were disappointing, albeit South Africa and Brazil were notable buyers of U.S. HRW wheat. Reports from Europe indicate France is still sitting on a large stockpile of wheat. Improved exports are expected to absorb some of the huge surplus generated by a record 2015 harvest. However, overall there have been positive signs for France’s export business. Brazil's livestock producers have been feeding higher quality wheat because of corn shortages. Reports from Brazil show lower estimated old-crop soybean and corn production, off 1.28 and 3.74 MMT respectively.
Temperatures are expected to remain high in the grain belt with indications of precipitation in the Gulf region.
Tomorrow’s crop report is still expected to show a decrease in corn and soybean carry-out an increase in wheat carry-out.
Did You Know
Grain Hedge will be hosting a "Live Stream" for the USDA Crop Report
on Friday, June 10th
(Live Stream starts at 10:30 am CDT, Crop Report releases at 11:00 a.m. CDT)
Act-OC Exp-OC Act-NC Exp-NC
Corn 1,559 900-1,200 120 100-300
Soybean 475 300-500 758 500-700
Wheat (200) -50 223 300-500
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