Corn And Beans Higher Overnight
Corn and soybeans are higher overnight, while wheat prices are mixed. Corn is up $.02 – $.03 rebounding from 5 consecutive lower closes. Soybeans are up $.13 – $.15 on optimism of relaxed Covid restrictions in China, soybean meal up $3 – $5, and soybean oil is 40 – 60 higher. Chicago wheat is steady to up $.01, KC and MGEX wheat are steady down $.01. The US $$$ and spot crude oil are down. US stock indices are steady. Metals and softs are all higher.
The average ending stock estimates for Friday’s USDA WASDE report are corn 1.238 bil., up 56 mil. from 1.182 bil. in Nov. Range 1.170 – 1.350 bil. Soybeans 233 mil., up 13 mil. from 220 mil. in Nov. Range 200 – 296 mil. Wheat 581 mil. up 10 mil. from 571 in Nov. Range 551 – 602. Not much change expected for global stocks. Ave. estimate for Argentine corn is 53.8 mmt down from 55 mmt, while soybeans expected to slip to 48.8 mmt, down from 49.5 in Nov. Brazil corn expected up .3 mmt to 53.3 mmt while soybeans up .5 mmt to 152.5 mmt.
Chinese imports of Brazilian corn are gaining steam with 4 vessels having already left for the Asian country carrying 280k tons. 5 more are expected to leave soon with cumulative volume expected to reach 1 mmt for the year. Brazil’s soybean plantings have reached 91%, vs. 94% YA. First corn crop plantings at 93% vs. 94% YA. Ukraine corn exports via the Black Sea did pick up last week as just over 838k tons of corn were shipped, up 39% from the 601k the previous week. The back log of ships awaiting inspection in Turkey slipped to 91, down from 98 the previous week.
Growing conditions across central Northern Brazil remain near ideal, a bit drier than desired in South RGDS. Argentine weather still hot/dry and forecasts for moisture seemingly continue to get pushed back. If that pattern doesn’t change soon production forecast will begin falling more aggressively.
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