Soybeans posted modest gains overnight trying to recover some of yesterday’s losses while wheat and corn were mostly stable. In outside markets the US dollar and crude oil were extending their gains from yesterday.
USDA’s supply and demand report showed the most bullish news for wheat where USDA trimmed global and US carry-out more than had been expected by the trade. India's production was slashed by 3 MMT and a few minor adjustments in other countries resulted in a 5 MMT drop in wheat carry to 248.6 MMT.
In soybeans, USDA held firm on their projections to South America crop production and China’s soy imports. USDA at 104 MMT for Brazil seems to be below recent estimates from private consultants and SA gov agencies at 105 to 106. USDA also kept US exports of soy unchanged and left China’s soy imports the same although both are running better than pace at the mid-mark of the marketing year.
USDA lowered US corn carry-out by 35 MB thanks to better ethanol and industrial use of corn but they kept corn exports unchanged. YTD corn sales are up about 12% over the 10-year pace of sales needed to reach USDA’s annual forecast of 2,225 MB. If the current pace of exports were to persist it would imply an annual export number of around 2,500 MB. In overnight news, South Korea's largest feed-maker, Nonghyup Feed Inc. (NOFI), purchased 210,000 tonnes of corn and 67,000 tonnes of feed wheat in an international tender which closed on Friday. The grains can be sourced from optional origins for May/June arrival in South Korea, they said.
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