Headlines
Prospective Plantings and Quarterly Stocks out @ 11 AM CST. Soybean export sales disappoint. Ethanol production & stocks decline. Exporters sell 266,500 metric tons of Soybeans for delivery to unknown destinations during the 2017/2018 marketing year. -USDA
Weather
Precipitation (.25”-1.5”) fell in east central CO, eastern OK and eastern TX yesterday. More precip in northeastern CO and eastern OK today. Dry weather in Argentina through Friday. Some showers (.25”-1.5”) forecast for northern Santa Fe, La Pampa, southern Cordoba and western Buenos Aires late this weekend into Monday.
Rains in Brazil favor Safrinha corn crop.
Ethanol Production
Ethanol production declined to 1.039 million barrels per day from 1.049 MBPD LW. Production was 1.4% below last years same week production. Ethanol needs to run 2.8 percent above LY production levels to meet USDA corn used for ethanol estimates.
2016 and 2017 both saw ethanol production decline slightly between late March and May. Ethanol production cannot afford to dip during that time period this year, in order to stay on track with USDA’s corn used for ethanol projections. Ethanol stocks declined last week to 957 million gallons from 998 million gallons. The sharp decline in stocks was the largest single week drop since 2013.
Export Sales
Soybean sales missed expectations,and were down 58 percent from LW. Corn sales met expectations, but declined 8 percent from LW. Wheat sales met expectations and was up 33 percent from LW.
|
Actual |
Estimated |
|
|
Wheat |
353 |
200-400 |
|
Corn |
1,353 |
1,200-1,500 |
|
Soybeans |
317 |
600-900 |
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