Grains are moving higher across the board in Chicago with corn up 5 cents, soybeans up 22 cents, and Chicago wheat up 7 cents.
Export sales this morning were very positive for soybeans which had sales of 291,500 MT for old crop which was on the high side of expectations and new crop sales of 2,451,100 MT which beat the high side of analyst expectations by about one million bushels. China was a large buyer this week, accounting for 70% of old crop sales and 52% of new crop sales. Unknown destinations made up another 37% of new crop soybean sales. Old crop sales are now 63 million bushels ahead of pace to meet USDA expectations and if no sales were reported from now until the end of the marketing year would finish out 44 million bushels above USDA forecasts.
Corn export sales came in below analyst expectations at 291,500 MT compared to 300,000-500,000 expected. Sales for old crop corn were down 49 percent from the week before. New crop sales met analyst expectations at 1,143,400 MT. Old crop corn is now 63 million bushels ahead of pace to meet USDA expectations.
Wheat sales this morning met expectations reporting 443,200 MT of sales compared to expectations of 350,000-550,000 MT.
Even before this morning’s export sales report, November soybean futures were trading 21 cents higher on some concerns about final yield. Concerns are starting to circulate through the trade that a cooler / dryer August leaves questions about final yield as we enter the pod setting stage for much of the crop. Non-commercial traders held a near record short soybean position – making the market ripe for a short covering rally.