Corn and soybeans continued to move lower, still searching for support in the cash market
National corn basis was mixed but balanced out to no-change from last week. Ethanol facilities were unchanged from last week as well. Ethanol output was off 7,000 BPD to 991,000 BPD while stocks rose 877,000 barrels to 19.92 million barrels. Corn along the river was off by 1 cent, drug down by exports and barge rates.
Soybean basis moved lower by an average of 3 1/2 cents this week. Crushing plants were off by 3/4 of a cent, moving in lockstep with last week’s losses. River terminals continue to struggle to keep basis levels. This week river terminals were off by 13 1/4 cents as exports remain strong and barge rates continue to climb higher.
The grains saw mostly positive movement this week. Corn moved higher by 6 1/2 cents while soybeans leaped higher by 38 3/4 cents. Wheat was off slightly this week, down 2 1/2 cents.
On Monday USDA reported that the US corn crop was 61 percent harvested versus 46 percent last week and 63 percent for the 5-year average. Soybeans was 76 percent harvested versus 62 percent last week and is on par with the 5-year average.
Soymeal was sharply higher Wednesday, helping fuel the bean rally while domestic prices for soybeans are up over 50-cents a bushel in the past few days, doubling up the US gains. Traders are looking for big US exports to China to continue as crush margins and import margins for beans the best they’ve been in a year.
In South American weather, Brazil looks good for ample moisture over the next several weeks. Argentina will be dry thru the weekend but rains are expected to bring beneficial moisture early next week.
Russian wheat export prices rose for the fifth consecutive week on continuing demand from Egypt, the world’s largest wheat importer, analysts said on Monday. Egypt’s state grain buyer acquired 120,000 tonnes of Russian wheat on Oct. 20 in its third tender since the start of October. Black Sea prices for Russian wheat with 12.5 percent protein content were at $175 a tonne on a free-on-board (FOB) basis at the end of last week, up $1 from a week earlier, Russian agricultural consultancy IKAR said in a note.
Crude oil took a hit this week as API stocks data after Tuesday’s close showed a 5 million barrel build in oil inventories and a nearly 2 million barrel build. For today’s official EIA data, the trade is only looking for a 750,000 barrel build in oil and a 1.25 million barrel decline in gas inventories.