In the overnight session the grains traded mixed with March corn up ¾ of a cent, march soybean down 2 ¼ cents, march Chicago wheat up ¾ cents and Kansas City wheat up ¾ of a cent. Yesterday, wheat was able to rebound and hold onto gains by the end of the day.
Exporters sell 260,000 metric tons of soybeans for delivery to unknown destinations, of which 65,000 MT is for 2017/2018 delivery and 195,000 MT for 2018/2019 delivery. -USDA
Kansas city wheat found support at the 50 day moving average and was able to close above the previous days high which is a positive sign for prices. The harsh cold temperatures throughout Kansas in the last week of December and first week of January have traders concerned about damage, which can only really be confirmed in the spring. HRW growing regions have also been very dry with the majority of Kansas classified as abnormally dry and some parts in the southwestern part of the state considered moderate or severe drought. Traders are also expecting the Winter Wheat seedings to be reported at 22.327 million acres on January 12th compared to 23.436 million acres planted last year.
The USDA will release its latest supply and demand report on Friday. Analysts are expecting ending stocks for soybeans to be revised higher to .472 billion bushels from .445 billion bushels in December’s report after exports have fallen behind pace this fall. The average trade expectation for corn ending stocks is 2.431 billion bushels which would be down from 2.437 billion bushels in the December report. Analysts are expecting a very slight revision in wheat ending stocks to .959 billion bushels down from .960 billion bushels in December.
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