Grains were mixed this week with wheat and corn posting modest 2 cent gains while soybeans were off 11 cents.
Harvest has been picking up pace this week although areas of the Western Cornbelt continued to be hit by rains which have slowed progress. The Crop Progress report released on Monday showed that corn harvest for the third week in September is running behind the 5-year average with only 11 percent of the corn crop harvested compared to the average 17 percent. The corn crops good-to-excellent rating held steady this week at 61 percent. Soybean harvest is 10 percent complete compared to the 5-year average of 12 percent. Winter wheat is in line with the 5-year average with 24 percent planted.
Export sales for the week were strong for soybeans which were well above expectations. China and unknown destinations accounting for 2.4 million metric tons of the 2.982 total sales this week. Wheat sales were also strong this week, up 42 percent from last week and on the high side of analyst expectations. Corn sales on the other hand were a disappointment missing expectations with only 320,000 metric tons sold.
Wheat production in Australia will be impacted by the high temperatures and low soil moisture during the spring this year. The conditions across Australia have analysts polled by Reuters estimating a production at 20.015 million metric tons which is below the USDA’s September WASDE report of 22.5 MMT and a long ways from last year’s production of 35.56 million metric tons. Australian wheat prices have been rising and are already above offers being made for U.S. cargoes in Asia which should help North America export sales this marketing year.
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