Weekly Export Sales Numbers Disappointing This Morning

Grains were feeling weaker heading into the morning break as dismal export sales pushed prices lower.

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Yesterday’s USDA report did little to change the overall outlook of abundant US and global supplies. The first reporting of new-crop 2017 carry-out did show ending stocks being cut, but at 914 MB of wheat and 2,110 MB of corn, these are still historically high values. Soybean carry-out was smaller than expected at 485 MB vs 555 expected, but it was made possible by a huge 100 MB increase in exports which may be difficult to muster in an environment with massive South American supplies.

This morning, CONAB bumped their Brazil soy crop forecast to 113 MMT, up from a previous forecast of 110 MMT. Corn is expected to come in at 92.8 vs a previous estimate of 91.5 MMT. Yesterday, USDA pegged those crops at 111.6 and 96, respectively.

This morning’s weekly export sales report were disappointing as corn saw net cancellations for new-crop delivery and old-crop deals that were a paltry 277,000 MT vs 700-900,000 expected.

Export Sales-