Overnight saw a continuation of Tuesday’s move with grains in positive territory going into the break. Crude oil, after gaining $2.50 a barrel on Tuesday turned lower this morning as did equity futures. The USD index continues to hold on to 13-month highs.
USDA reported a 165,000 MT of soybeans were sold to China.
On Monday NOPA soy crush numbers came in much bigger than expected with a monthly October crush of 164.6 MB, well above the average analyst estimate of 160.5 MB. However, bean oil stocks were also slightly higher at 1.343 billion pounds versus expectations of 1.323 billion.
In overnight news, Algeria bought 40,000 MT of optional-origin wheat. A feed group from Taiwan bought 65,000 MT of corn, thought likely to be sourced from the US.
Export values for corn held up well this week as Argentina and Europe corn prices strengthen relative to US values. However, soybean prices in Brazil and Argentina turned sharply lower relative to US values this week which could hamper US competitiveness.
Oil prices shed more than one percent on Wednesday, returning some of the gains made in one of the year's biggest rallies a day earlier, after weekly U.S. crude stocks rose beyond expectations and a strong dollar weighed on commodities. Weekly U.S. crude oil stocks surged by 3.6 million barrels last week, the American Petroleum Institute (API) industry group said, exceeding analyst expectations of a 1.5-million-barrel rise. Official EIA data is to be released at 9:30 am CDT and is expected to show a 1.48 million barrel build.
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