Grains were mixed overnight with corn and wheat posting modest losses while soybeans inched higher.
For corn, basis levels seem to be coming under pressure as end-users begin to roll out of July into September and take some of the spread off the top. Western Cornbelt end users were mostly lower yesterday dropping 5 to 10 cents in some cases. A notable exception was Decatur which has seen its basis move up in the last few days after being relatively uncompetitive. South Korea’s Nofi bought 69,000 MT of optional origin (including Black Sea) corn for arrival by October 30, and a further 58,000 MT to arrive by November 15.
In wheat, India’s cabinet on Friday is expected to allow a move to add another 2 MMT of wheat for export, bringing the total offered to 6.5 MMT as the government looks to cut stockpiles of wheat. Wet weather continues to plague US winter wheat harvest, slowing the pace in the Plains, and also causing quality concerns in SRW wheat territory in the Eastern Cornbelt. China, as well, seems to be having issues with wet weather during wheat harvest as sprouting is starting to be an issue.
For soybeans, a South Korea feed manufacturer bought 60,000 MT of soymeal overnight believed to be sourced from South America. On Tuesday, it was announced that China bought 240,000 MT of new-crop soybeans from the US. Also, the US attaché in China pegs Chinese soybean imports up sharply in the coming year, at a record 67.5 MMT, but many in the trade remain skeptical. Shanghai JC Intelligence, a respected local analysis group, estimated the figure at 60.5 MMT, saying that the USDA has “grossly overestimated China’s demand” for soybeans.