Grain futures drifted lower in very light overnight news. No change in the 6-10 day forecast and little demand side numbers to report. Corn is down 3 cents, soybeans are down 6 cents, and Chicago wheat is off 3 cents.
Friday, July 11th, will bring the July USDA report. This will be the first report to use planted acreage expectations from the June 30th Planted Acreage report. That report shocked the soy complex, with 2014 acres projected at 84.8 million acres. Traders expect soybean carryout to be projected at 418 million bushels in the coming marketing year. This market has sold off significantly since June 30th, but a 400+ million bushel carryout implies there is still great downside risk in this market. Next area of technical support lies at $10.95 on thesoybean contract.
Grain export sales have been being reported on a relatively regular basis as prices continue to ratchet lower. This morning two reportable U.S corn sales were sold to Japan (101,600 MT) and unknown destinations (107,696 MT) for new crop delivery. Also, Egypt’s GASC issued a tender yesterday for 55,000-60,000 metric tons of U.S wheat, Ukrainian milling wheat, Russian milling wheat and Australian standard white wheat. The price of Chicago wheat has dropped sharply since May 9th when the local U.S supply concerns were eventually trumped by growing global stocks. Since the open of trade on that Friday, the September wheat contract has fallen $1.89 cents.