Markets are trading higher after yesterday’s USDA Supply and Demand Report. The report showed increased demand for US corn, with higher feed use and residual and exports. They left ethanol use unchanged, which was a surprise given the strong pace of ethanol production since early June. They also lowered Brazil’s corn production 5.5 million tonnes to 93 million. China was major destination for exports last week at 18.8 million, followed by Mexico at 8.5 million and Japan at 7.5 million. US corn conditions improved slightly but remains below average.
Soybeans are higher today following the report. USDA didn’t change its previous soybean production estimate of 4.4 billion bushels. USDA lowered soybean imports, crushing’s and exports. With the offsetting changes ending stocks remain unchanged. US soybeans are 46% blooming vs average of 40% and 10% were setting pods, which is equal to average.
USDA report forecast lower than expected wheat production. All wheat ending stocks are at 665 million bushels compared to average trade guess at 729 million bushels. US winter wheat is 59% harvested, which is behind the average of 65%. US wheat condition declined sharply for the seventh consecutive week, with 55% in poor to very poor condition.
The wheat combines started rolling early in the week, but mother nature put a stop to progress with cloudy damp weather. The early wheat that came in was good quality. Let’s hope for a good rain shower for the corn and beans followed by several days of sunshine to get the wheat in the bins.
Your grain marketing specialist is available to get your grain sales in a good position before harvest.
A lot of exciting things are happening with the rebranding of our name. ALCIVIA, which may sound unique, comes from the Latin word for community. While our name has changed, our commitment to both customers and employees remains as strong as ever.
Keep the faith and stay safe!