Grains Trade Mixed in the Overnight Session

In the overnight session the grains traded mixed with March corn up ½ of a cent, January soybeans down 1 ½ cents and Chicago March wheat up ¾ of a cent. The USDA report will be released today at 11 AM CST. March corn is currently trading near recent lows and any bearish surprise could be enough to break prices another leg lower.

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根据路透调查of analyst estimates the average trade guess of 17-18 corn ending stocks 2.478 billion bushels which would be down from 2.487 estimated in November. Analysts are expecting 17-18 ending stocks for soybeans and wheat to be higher than the November forecast with wheat pegged at 938 million and soybeans at 438 million bushels, up from 425 million bushels in November.

Exporters sell 120,000 metric tons of Hard Red Winter Wheat for delivery to Algeria during the 2017/2018 marketing year. Exporters sell 152,000 metric tons of Corn for delivery to Mexico during the 2017/2018 marketing year. Exporters sell 168,300 metric tons of Soybeans for delivery to unknown destinations during the 2017/2018 marketing year. - USDA

The average trade guess for global ending stocks is to see a slight reduction in wheat, corn and soybeans from November forecast. Analysts are expecting to see wheat ending stocks at 267.07 million metric tons, corn ending stocks at 202.72 million metric tons and soybean ending stocks at 97.82 million metric tons.

Analysts are expecting to see revisions lower for corn and soybeans in both Brazil and Argentina. The average trade guess has Argentina corn production at 41.77 million metric tons and soybean production at 56.52 million metric tons. Brazil corn production is expected to be revised lower to 93.26 million metric tons while expectations are for a slight increase in soybean production 108.21 million metric tons.

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

—Kevin McNew