In the overnight session the grains are trading lower with December corn down ½ a cent, November soybeans down 6 ¼ cents and December Chicago wheat down 2 cents. The sharp rally in the U.S dollar following the latest Fed meeting could be pressuring commodities this morning. The Fed’s intention to press forward with another rate increase by the end of the year despite the decline in inflation surprised many and triggered a sharp rally in the U.S dollar index.
EXPORTERS SELL 132,000 METRIC TONS OF SOYBEANS FOR DELIVERY TO CHINA DURING THE 2017/2018 MARKETING YEAR- USDA
According to the EIA report released on Wednesday Ethanol production dipped this week to 1.033 million barrels per day, down 1.3 percent from last week. This weeks production was 5.3 percent above last year during the same period. Production will need to continue running ahead of last years levels in order to meet the USDA 2017-18 forecast of 5.475 billion bushels used for ethanol. Ethanol stocks were mostly unchanged in this week’s report at 888 million gallons.
This weeks export sales were very strong for soybeans and less impressive for corn and wheat. Soybean sales recorded 2,338,100 metric tons with over half going to China. China importers are beginning to take advantage of the weakness in U.S soybean prices as supplies in Brazil have thinned. Wheat export sales were down three percent from last week and on the low end of analyst expectations with only 307,200 metric tons sold. Corn sales missed expectations with net sales of 526,900 metric tons recorded.
Weekly Export Sales-
|
Actual |
Estimated |
|
|
Wheat |
307 |
300-500 |
|
Corn |
527 |
700-1,000 |
|
Soybeans |
2,338 |
1,200-1,500 |
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