USDA Supply and Demand Report out Today at 11am CST

Grains Continue to sink lower

October 2, 2020

Ahead of USDA’s crop report, grains continued to sink lower with soybeans trading below $10.17 for the first time since Feb 27. In outside markets, crude oil was on a $5 downside beating in the last two days thanks to a huge build in crude stocks over the last week.

USDA reported a 120,000 MT of corn sales to Japan.

Brazil's agricultural statistics agency Conab on Thursday raised to 107.6 MMT its estimate for the country's 2016/17 soybean crop, up 2 MMT from its previous forecast. The agency said corn output in the season should reach 88.9 MMT, compared to 87.4 MMT estimated last month, as favorable weather for grains production continue to boost crop prospects.

In overnight news, a South Korea feed group was in the market for 66,000 MT which may come from optional origin sources. Saudi Arabia was looking to buy 720,000 MT of hard wheat. No origins were specified but it is thought EU origins might have an inside track to the business.

USDA’s supply and demand report will be out at 11 am CDT and is not expected to change the tone of traders attitudes. Attention will focus on SA crop projections with the trade looking for a bump higher in Brazil’s corn and bean estimates. This morning’s export sales report was mostly in line with expectations, which are nothing impressive on a seasonally-adjusted basis.

Fresh export business continues to be light. Meanwhile spot basis at river terminals took a fairly substantial hit yesterday. Corn basis at river terminals across 87 buyers tracked by Grain Hedge fall a collective 3 cents a bushel yesterday. Soybean basis was a bit weaker at IL river terminals. Corn plants were mixed with 12 plants raising their basis yesterday, 9 dropping their basis and the remaining 121 plants holding steady. For soy crushing plants 4 out of 52 plants raised their basis yesterday.

Weekly Export Sales-