In the overnight session the grains traded lower with March corn down 1 ¼ cents, January Soybeans down 4 ¾ cents and March wheat at 3 ¾ cents. Corn had nice bounce yesterday after prices approached previous lows set back in the middle of November. The Dec17-Mar18 corn spread widened out to -14 ½ cents, the most we have seen this year.
EXPORTERS SELL 525,000 METRIC TONS OF SOYBEANS FOR DELIVERY TO CHINA DURING THE 2017/2018 MARKETING YEAR. EXPORTERS SELL 132,000 METRIC TONS OF SOYBEANS FOR DELIVERY TO UNKNOWN DESTINATIONS DURING THE 2017/2018 MARKETING YEAR. EXPORTERS SELL 110,000 METRIC TONS OF GRAIN SORGHUM FOR DELIVERY TO CHINA DURING THE 2017/2018 MARKETING YEAR- USDA
Ethanol production declined slightly over the last week to 1.066 million barrels per day. Despite the decline this week's production was 5.3 percent above last year and was the 2nd highest weekly production on record. Ethanol production is 3.7 percent ahead of last years pace in the first few months of the marketing year which is well above the pace needed to meet USDA demand estimates. Ethanol stocks increased sharply to 22.044 million barrels, up 147,000 barrels from the previous week. Stocks have been seasonally very strong as we head into a time of the year when stocks continue to get bigger. Ethanol stocks this week are now 20 percent over last year's levels.
Export sales were disappointing for both corn and wheat this morning. Old crop corn only posted 599,200 metric tons of sales which was down 45 percent from the previous week. Wheat sales also disappointed, missing estimates by a substantial margin and declining 8 percent from the previous week. Soybean sales met expectations and increase 9 percent from last week.
Weekly Export Sales-
|
Actual |
Estimated |
|
|
Wheat - NC |
184 |
250-450 |
|
Corn - OC |
599 |
700-1,100 |
|
Soybeans - OC |
942 |
800-1,200 |
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)
