Corn is trading higher and has rebounded from today’s earlier lows as the hot and dry weather over the weekend likely did further damage to the crop.
Later this afternoon, the Crop Progress report will be released, and most analysts expect the good to excellent rating to fall by 2-3 percentage points.
Basis bids for corn shipped by barge to the U.S. Gulf Coast were higher on Friday as the low Mississippi River water levels slow the flow of grain.
The Brazilian second crop corn harvest is nearing completion and record production is expected but planted acres of corn for 23/24 are expected to shrink.
While corn prices have recovered, soybeans have not and are trading lower along with both soybean meal and oil despite poor weather and another flash sale this morning.
Private exporters reported sales of 251,000 metric tons of soybeans for delivery to unknown destinations during the 2023/2024 marketing year.
Crude oil is trading sharply higher today after Saudi Arabia said that it would extend the voluntary cut of 1 million barrels per day until the end of the year. This should be supportive to soybean oil.
The Energy Department reported that a record 1.27 billion pounds of bean oil were consumed for biofuels which is up 49% from a year ago.
All three wheat products are trading higher today following a weekend attack on a Ukrainian port by Russia, and Putin announcing that he would not renew the grain deal after meeting with Turkey.
Russia booked a sale of wheat to Egypt in a private tender selling 480,000 mt over the weekend. Russia was passed over by Egypt for their previous two sales.
Russian exporters are reportedly offering wheat at $245-$250/mt FOB versus the recommended government floor level of $270/MT.
The Argentinian wheat crop has been struggling with dry conditions, but recent rainfall may have been enough to relieve the crop.
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