In the overnight session the market was mixed with corn slipping a penny, soybeans up 2 ¼ cents and wheat up ½ a penny. Short covering over the last couple days has lifted the grains off their lows as traders look to even up positions going into the WASDE Supply and Demand report on Friday. The trade expects the WASDE report to show that production and ending stocks will be higher than was forecast in Septembers report.
Lanworth has raised its forecast of U.S production for both corn and soybeans with expectations of a corn yield of 175.5 bushels per acre, up from 174.9 in their last forecast. They expect soybean yield of 47.9 bushels per acre, up from 47.1 in their last report on Sept. 29th.
In the overnight session South Korea’s Daehan Flour Mill announced a tender for 122,300 metric tons of wheat for delivery in February to May. Included in the wheat tender was 25,600 metric tons of milling wheat to be sourced from the U.S.
The USDA attache in Argentina is projecting 2.47 million (5%) additional soybean acres planted than the USDA projected in the September WASDE report. Large South American production will start catching more attention as planting is now underway in Brazil and Argentina. Argentina, Brazil, and Paraguay soybean ending stocks are projected to rise 25% in the 2014/15 marketing year.