In the overnight session the grains were mixed with December corn up ½ a penny, December Chicago wheat down ¾ of a cent and November Soybeans rebounding 8 cents. There was some heavy rains last night in southwestern Minnesota bringing as much as 6 inches to some spots. The 1-5 day weather outlook is expecting variable precipitation throughout most crop areas. In the 6-10 day weather forecast temperatures are expected to be warmer than normal early next week with cooler temperatures returning by the end of next week. As the cold front moves into the midwest it is expected to bring precipitation which should continue to support the corn and soybean crops.
Yesterday afternoon Egypt’s GASC announced that they had purchased 355,000 metric tons of wheat sourced from Russia and Ukraine. The Saudi grain buying organization announced it had issued an international tender to buy 480,000 metric tons of hard milling wheat. Also in the news was an announcement from the U.S. Soybean Export Council that the Chinese trade delegation signed a deal to buy 3.8 million metric tons of U.S. Soybeans in a ceremony in Nebraska.
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On Wednesday, the EIA released their weekly ethanol production and stocks report. The latest report showed a sharp rise in ethanol production to the second highest weekly production number on record. Production jumped to 1.059 million BPD from 1.012 million BPD. Despite the sharp increase, this week's production was still only 3 percent over the same week last year and with only three weeks left in the marketing year it is unlikely we will see the USDA’s ethanol estimates met. In order to meet the UDSA’s corn used for ethanol forecast we would have to see 7 percent increases over last year during the next three weeks. Ending stocks also increased last week to 21.828 million barrels from 21.347 last week.
Exports sales this morning showed that wheat had 633,600 metric tons for the 17/18 marketing year up 37 percent from the previous week. Old crop corn only recorded 62,400 metric tons which is slightly better than last week but well below the four week average. New crop Corn sales were strong with 671,000 metric tons recorded. Soybeans were exceptionally strong this morning with 453,200 metric tons of old crop sold and 899,400 metric tons of new crop sales. Soybeans sales were well above last week and the four week average.
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