In the overnight session corn soybeans and wheat are trading slightly lower with corn down 2 cents soybeans down 5 ½ cents and wheat down 1 ¼ cents going into the market pause. Kansas city wheat is trading 3 cents higher here this morning. UkrAgroConsult said this morning that milling wheat consisted of only 58% of harvested volume compared to 75 percent last year in Ukraine. Protein content eroded during summer rains which left 12.5% protein levels accounting for only 18.7 percent of harvest while 11 percent protein wheat accounted for 38.4% of harvest.
Export sales were released out this morning which showed that wheat met market expectations by booking 454,000 metric tons which was up 22 percent from the week before. Wheat sales estimates were between 350,000-550,000 metric tons. Corn sales were reported at a marketing year high with 1,922,800 metric tons sold for delivery in the 14/15 season. This included the large sale to Mexico reported on October 10th. Corn’s sales number was on the high side of expectations. Soybeans sold 935,000 metric tons which was also on the high side of analyst expectations, with China being the primary buyer.
Yesterday’s ethanol report showed sliding production as crush margins continue to sag across the grain belt. Lower crude oil prices have pressured ethanol prices to the downside, but positive price action for cash corn has been the greatest impact on crush margins. Crush margins now sit below $2.00 per bushel in Iowa for the first time since August 2013. Basis at ethanol plants has reflected this weak margin environment, with cash basis for spot corn delivery down an average of 2 cents just yesterday. We will detail the entire move for ethanol in this afternoon’s cash grain report.
Outside markets are finally finding bottom after several days of hard selling. This morning S&P 500 futures are up 23 points while crude oil is trading a dollar per barrel higher. The dollar index had a relatively quiet trade in the overnight.