Grains are sliding lower in the overnight session with corn down 3 cents, soybeans unchanged, and Chicago wheat off 5 cents. A reportable sale just came across the wire, showing 13,000 MT of soybeans going to unknown destinations.
Old crop corn, soybeans and wheat export sales were all reported on the low side of expectations this week. Wheat only booked 590,900 metric tons and down 26 percent from the previous week. Corn booked 120,900 metric tons which was down 30 percent from last week. Old crop soybean reported 94,900 metric tons which was down nearly 50% from last week’s sales. Old crop soymeal sales were very positive beating expectations with 252,100 metric tons with analyst expectations ranging from 50,000-150,000 metric tons. New crop export sales for corn was also lacking, only booking 758,700 metric tons. New crop soybean sales were within analyst expectations, booking 1,008,000 metric tons which was mostly made up of sales to China.
The western grain belt received wide spread precipitation overnight, with areas of South Dakota, Nebraska, and Iowa receiving 1 to 2 inches of rain. These are timely rains for the soybean crop in particular as we enter pod fill in many places. The western corn belt remains the focus for the trade as drought conditions have re-emerged in the area.
Ethanol production figures were reported on Wednesday, showing a sharp week-over-week decline in production. For the week 902,000 BPD were produced – down from 952 during the previous reporting period. Corn going to ethanol still remains 10-20 million bushels ahead of pace to meet USDA expectations for the 2013/14 marketing year.
Vladimir Putin signed orders yesterday banning agricultural products from the United States and some E.U. countries, following sanctions brought against Russia last week. This is not expected to have a major impact on U.S. grain prices as Russia has been a very infrequent export customer. For the current marketing year the U.S. has shipped 8 cargos of soybeans and no corn or wheat to the Russian Federation.
This morning it was confirmed that the wheat quality requirements have been tightened at the delivery locations for the EURONEXT wheat contract. These steps were taken to ensure that this year’s rain damaged wheat will not be used for contract deliveries, and to help ensure importers that the EURONEXT contract can be used to hedge more than feed wheat. Chicago and Kansas wheat moved higher yesterday on rumors and talks that European wheat standards were tightening and delivery locations. Chicago wheat is trading 5 ¼ cents lower at this morning’s pause.