US Winter Wheat Planting Nearing Completion

Grains Moved Higher in the Overnight Session

October 2, 2020

In the overnight session the grains moved higher with December corn up 1 ½ cents, January soybeans up 3 ¼ cents and December Chicago wheat up 3 ¾ cents this morning. Wheat’s move higher this morning appears to be more short covering action after the grain broke through August lows early on this week. The previous low, which was once support will now likely turn to overhead resistance around 4.23 on the December SRW chart.

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Weekly ethanol production increased again this week to 1.056 million barrels per day up from 1.039 million bpd. This was a strong weekly production was 3.3 percent above last year’s production and is the 4th highest ethanol producing week on record. Ethanol stocks increased to 21.474 million barrels from 21.034 million barrels last week. Year-over-year stocks continue to rise as ending stocks remain steady during a period when the seasonal tendency is to reduce ethanol stocks. In the latest Grain crushings report released yesterday afternoon, the USDA showed that 447.6 million bushels of corn was used for ethanol production in the month of September, up from 435.2 million bushels last year. The USDA also stated that 1.847 million metric tons of DDGs were produced in September which was down 1.965 million from last year.

Exporters sell 1,356,360 MT of Corn for delivery to Mexico, of which 845,820 MT is for 2017/2018 delivery and 510,540 MT is for 2018/2019 delivery-USDA

The Oilseed Crush report, which was released yesterday at 2 PM CST showed that 145.35 million bushels were crushed in the month of September which was inline with analyst expectations of 145.4 million bushels. The USDA reported that soy oil ending stocks were 1.711 billion pounds, which was above expectations of 1.664 billion pounds.

Rains today will continue to slow planting progress in Argentina. With limited precipitation in the forecast early next week there should be an opportunity for fieldwork before rain returns to the forecast by late next week.

Export sales beat expectations for Soybeans with strong sales to China totaling to 1,531,400 metric tons this week. Corn on the other hand recorded sales on the low end of expectations, down 37 percent from the previous week and down 33 percent from the four week average. Wheat sales were mostly steady, down only 4 percent from last week and in the middle of trade expectations.

Weekly Export Sales-