Grains were mixed overnight following yesterday’s selloff. In outside markets equity futures were pressing lower as was the US dollar while crude oil was holding on to small gains.
Yesterday’s USDA crop report did little to change the bearish stance in the grain market as USDA mostly hit expectations for US corn and soybean production. Ending stocks were cut thanks to USDA ratcheting up their forecast for both corn and soybean exports, but meeting the now 2.025 billion bushel soybean export number may prove challenging if Brazil ramps up soybean production as USDA expects.
Overnight there was a fair amount of tender interest. First, Egypt’s GASC was tendering for an unspecified amount of soft and milling wheat. Saudi Arabia's main state grain buyer SAGO said on Thursday it was seeking to purchase 595,000 tonnes of hard wheat from global suppliers in an international tender. And two different South Korean feed manufacturers are in the market for corn, totaling 195,000 MT.
On Wednesday, the minutes from the Fed’s September meeting were released and policymakers judged a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen. In oil, American Petroleum Institute on Wednesday reported that U.S. crude inventories rose by 2.7 million barrels to 470.9 million barrels in the week to Oct. 7. This would be the first rise in oil stocks following five straight weeks of declines. Official government EIA data will be out later this morning.
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