Grains end mixed Wednesday trading weather and gearing up for reports from USDA and Conab.
Mark Schultz, Northstar Commodity, says wheat also rallied Wednesday with traders adding weather premium on hot, dry and windy conditions in HRW areas of the Southern Plains.
Weather is an issue in Russia as well as their crop is facing some dryness. He says that’s important because Russia has been undercutting the world wheat market. A hiccup in their supply might help improve export demand for U.S. wheat. Plus, Russia has had some wheat export issues due to poor quality.
Corn ended higher on the heels of the rally in wheat. Schultz says the South American crop size is the key for the corn market. There have been some crop problems in Brazil in the second crop corn but recently Matto Grosso has seen some better weather. “So, it will take a change back to hot and dry for that crop to get smaller.”
Soybeans were lower for a second day setting back with meal.
All of the grains were gearing up for USDA and Conab production estimates Thursday.
Is there anything in the reports that could break corn or soybeans out of their trading ranges?
Schultz says unfortunately it will take large production cuts in Brazil’s corn and soybean crop for prices to rally because of the large carryover in the U.S. and currently there is a large discrepancy between USDA and Conab’s estimates.
