Corn is trading unchanged to slightly higher in quiet trade, with support from higher soybean prices. This morning, December corn made a new two year low at $4.61.
This morning, private exporters reported a flash sale of 143,637 metric tons of corn for delivery to Mexico during the 23/24 marketing year. Exports have been slow, and most sales have been to Mexico.
In Brazil, the northern regions remain hot and dry with temperatures expected to rise. This will likely cause replanting of soybeans, which would delay safrinha corn planting.
Domestically, ethanol margins are very profitable despite prices falling to two-year lows. Export demand for corn would be very poor without the business from Mexico.
Soybeans are trading sharply higher near midday, after gapping higher on Sunday night’s open and receiving support from a rally in soybean meal that has the December contract at new contract highs. Soybean oil is slightly lower despite higher crude oil.
Due to Brazil’s hot and dry weather, it is being estimated that 20-25% of the soybean crop will need to be replanted, which would also have implications for corn plantings.
This morning, private exporters reported a flash sale of 204,000 metric tons of soybeans for delivery to China during the 2023/2024 marketing year.
The USDA announced over 100 million bushels of soybean sales last week, which were mainly to China in a big turnaround from the low exports a few months ago.
All three wheat products are trading lower despite sharply higher soybeans and higher corn as the lack of export sales weighs on prices.
According to the Buenos Aires Grain Exchange, the 23/24 wheat crop production is still at 15.4 mmt, but harvest has advanced to 14.4% complete, versus 9.3% last week.
In last week’s WASDE report, Russian wheat production was estimated higher by 5 mmt to 90 mmt, but world wheat ending stocks are still forecast to be the lowest in 15 years.
While Russia has been dominating global exports, last week their FOB values moved higher by $5-$7/mt in a sign that global prices may be increasing.
Sign up to get daily TFM Market Updates straight to your email!