Grains are drifting higher following yesterday’s USDA report. Corn is up a penny, November soybeans is up 3 cents and Chicago wheat is up 4. Bull spreading continues to be a theme in the soybean market, with September soybean trading up 6 cents.
Two sales of U.S. corn were reported this morning, with Mexico purchasing 107,600 and unknown destinations purchasing 130,000 tonnes. Both sales were for the 2014/15 marketing year and we could be seeing some end users trying to price grain after the USDA came up short (relative to expectations) on their yield number yesterday.
Drought in the central Chinese province of Henan is one of the worst in forty years with the region only getting half its typical rain supply. Despite the losses in yield, it is unlikely that this drought will result a substantial need to increase corn imports into China because the yield declines are largely offset by the increases in planted acreage. China is also sitting on a massive supply of corn after a number of good producing years. Yesterday, the USDA left China’s corn production number unchanged at 222 MT.
NOPA crush numbers will be out Friday, detailing soybeans going to crush during the month of July. Spot crush margins remained favorable for much of the month, averaging 60 cents per bushel on the board. NOPA numbers will be out at 11:00 AM central time.