Soybean Sales Bounce Back

在隔夜session corn is trading down 2 ¼ cents, soybeans are trading 3 ¾ cents higher and wheat is down 2 ¼ cents. This morning a reportable sale of 116,000 metric tons of sorghum was announced to unknown destinations with 58,000 metric tons for delivery in 14/15 marketing year and the other 58,000 delivered for new crop.

This week’s export sales were mostly positive for the grains and should help support the price of soybeans in this morning’s session. Wheat sales picked up 19 percent from last week booking 544,400 metric tons and beating analyst expectations of between 250,000-450,000 metric tons. Although the last few weeks have showed improvement still larger export sales will be needed to halt the slide in prices. Corn export sales were booked at 1,068,200 metric tons which was on the high side of analyst expectations but only half of last week’s sales which came in at a marketing year high. Expectations for corn sales ranged between 850,000 and 1,200,000 metric tons. Soybean sales booked 888,200 metric tons up from the mere 14,000 metric tons booked last week and well above analyst expectations which ranged between 200,000-400,000 metric tons.

昨天,乙醇产量下降1000横档ls per day to 978,000 barrels per day keeping ethanol production running 5.6 percent ahead of last year’s pace. Ethanol production continues to show strength as DDG prices have rallied sharply since China approved the GMO grain variety MIR-162. Currently, the USDA has accounted for only a .8 percent increase in ethanol production which could leave room for them to make further revisions higher in coming reports. Ethanol stocks have also lifted to a 5 year high for this time of the year, improving 244,000 barrels last week to 20.63 million barrels of ethanol.

There were a few tenders offered this morning including one that we will want to monitor in the coming days. Saudi Arabia’s state grain buyer issued a tender for 660,000 metric tons of hard wheat, while Tunisia’s state grains agency issued a tender for 117,000 metric tons of soft milling wheat and 50,000 metric tons of barley. Considering the sharp selloff we have seen in wheat over the last few days we will want to keep a close watch on the results of the tenders.

—Cody Bills