USDA Reports Excellent Export Sales for Wheat, Corn, and Soy Meal
For the period of Sep 14-20, the USDA announced corn export sales of 1,712,800 MT, well above traders expectations and last week’s strong number of 1,383,700 MT. The largest buyers of U.S. origin corn were Mexico, Guatemala, Japan and Egypt. Wheat sales also surpassed the expectations of analysts, coming in at 657,100 MT. This number is up 40% from the previous week and 59% higher than the 4-week average. Top buyers were Japan, the Philippines and Mexico. Soybean sales came in the middle of the range of expectations at 870,700 MT, down only about 47,000 MT from the previous week. The largest buyers were Unknown destinations, Spain, and the Netherlands. Soy meal sales shot higher than expectations, 147,300 MT for old crop and 511,900 MT for new crop. Largest buyers of meal were unknown destinations, Guatemala, and the Dominican Republic.
Ethanol Production and Supplies Decrease, Oil Refiners Lobby Against E15
According to the Energy Information Administration, production of ethanol decreased by 15,000 to 1.036 million barrels per day for the week ending on Sep 21. During the same time period last year, ethanol production was only slightly lower at 1.033 million barrels per day. Stockpiles of ethanol also drew down last week by 117,000 to 22.629 million barrels. Last year, ethanol supplies were reported at 21.138 million barrels, showing a year over year build of 1.491 million barrels. The presidents of the American Petroleum Institute and American Fuel & Petrochemicals Manufacturers made a joint statement to President Trump to reject E15 waivers from being issued by the EPA. The two cited a potential for consumers to use the wrong type of fuel if E15 were made more available and could make the RIN market more favorable for biofuel producers.
More Rain on the Way for Flooded Areas of E Iowa and W Illinois
After receiving nearly six times the normal levels of precipitation over the past 10 days, E Iowa and W Illinois are expecting more thunderstorms to begin over the weekend. The NWS also warns that there may be a possibility of a frost to affect the area on Friday night. Further north in the Dakotas and Minnesota, overnight temps could fall as low as the mid 20s.
USDA Quarterly Grain Stocks Report Released Tomorrow at 11 AM CST
The USDA Stocks report will announce numbers for stocks of corn, soybeans, and wheat for the months of July, Aug, and Sep. Analysts expect just over 2 billion bushels for corn, 400 million bushels of soybeans, and 2.343 billion bushels for wheat.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
