Grains Slip Lower in the Overnight

In the overnight session, the grains traded lower with corn down 1/2a cent, soybeans down 3 cents and wheat down 5 1/4 cents. Exporters reported a new crop sale of 165,000 metric tons to China early this morning. In a tender closing on Thursday, Japan’s Ministry of Agriculture is seeking 122,429 metric tons of food quality wheat from the U.S, Canada and Australia.

Wheat continues to pull back this morning after forecasts show chances of rain in the southern plains in the 6-15 day outlook. Temperatures will remain unseasonably hot with highs in the 80’s and 90’s over the next couple days throughout the southern plains which will continue to stress the wheat crop.

Yesterday, corn inspections outperformed by recording 1,027,876 metric tons inspected for export compared to expectations of between 700,000-850,000 metric tons. Both wheat and soybeans recorded export inspections within the range of expectations. Wheat recorded 370,086 metric tons, while soybeans recording 564,823 metric tons inspected for export this week.

After the market close on Monday, the USDA released their crop progress report with country level winter wheat conditions. Until now analysts have been using state level crop conditions which are typically released on a monthly basis. In yesterday’s report, 44 percent of the winter wheat crop was rated good to excellent, compared to last year at the same time when only 35 percent of the crop was rated good to excellent. Analysts were expecting winter wheat rated good to excellent to be around 42 percent.

—Cody Bills