In the overnight session the grains traded slightly higher with December corn up ½ a cent, November soybeans up 1 ¾ cents and Chicago wheat up 2 ¼ cents. The cool and dry weather forecast across key growing regions continues to fan the uncertainty surrounding this year's crop and anticipation for the USDA WASDE report to be released on Thursday seems to support the market.
Thursday’s WASDE report will be released at 11 AM CST and will include the USDA’s first survey based production forecasts for 2017. In the latest poll by Reuters, the average trade guess is for corn yield to be reduced to 166.2 BPA from 170.7 in the July report. Analysts are expecting corn production to be revised to 13.855 billion bushels, down from 14.255 billion bushels last month.
For soybeans, the average analyst guess is looking for yield to be revised lower by .5 BPA to 47.5 BPA and for production to slip from 4.26 billion bushels in July to 4.212 billion bushels.
Analysts polls show wheat production is likely to be revised lower as well with all wheat production expected to fall from 1.76 billion bushels in July to 1.711 billion bushels in August. The largest revisions are expected to be made to the spring wheat crop which has suffered from drought and heat in the western Dakotas into Montana for the majority of the growing season.
The Japanese Ministry of Agriculture sought 120,000 metric tons of feed wheat and 200,000 metric tons of feed barley in a tender this morning. It was also reported that Taiwan’s MFIG rejected all offers in a tender to buy 130,000 metric tons of corn.
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