Grains mostly stable in the overnight session with Corn unchanged, Nov Soybeans up 2.5 cents and Dec Wheat down three-quarters of a cent.
Exporters sell 120,000 MT of Corn for delivery to Mexico during the 2017/2018 marketing year-USDA
Whenever the US Department of Agriculture updates supply and demand outlooks, adjustments to the US corn and soybean production typically steal the spotlight from other items on the global balance sheets at this time of year. But, since the market expects marginal changes to these usual favorites, elements outside the US-particularly in wheat-may be the ones moving the world balance sheets this month. -states an analyst from Reuters
The US Department of Agriculture will release its monthly supply and demand estimates along with the US crop production report at 11 am CST. Analysts predict on average that the US Corn and Soybean harvests will each rise by fractions of a percent.
At the world level, the trade expects USDA to slightly trim 2017/2018 global ending stocks for wheat, corn and soybeans, the latter to the greatest degree at 1 percent. There could be some opposing movement in the grains, however, as adverse weather may have hurt Southern Hemispheric wheat crops. But losses could be offset with a potential supply expansion, especially in India, and China’s massive inventory always has the power to swing the wheat and corn balances. Although adjustments to US corn supply are expected to be minor, possible tweaks on the demand side could prove more influential to domestic stocks. -Reuters
China on Thursday increased the forecast for its deficit in corn supply in the 2017/2018 crop year to 4.31 million tonnes from the 890,000 tonnes predicted last month, stoked by lower-than expected output and higher anticipated demand. Corn output is expected to drop to 210.1 million tonnes versus last month’s forecast of 212.48 million tonnes, the agriculture ministry said, adding that less land had been planted with corn than earlier thought following reduced government support.
In the weather, rains return this weekend, slowing Midwest corn/soy harvest; however, drier pattern next week aids recovery. Plains hard red winter wheat seeding improving with drier pattern next 10 days, but brief rains early in weekend. Rains expected to return in 11-15 day, slowing Midwest corn/soy harvest and Plains hard red winter wheat seeding.
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