September 27: Corn Exports Help Push Prices Higher

On Thursday, grain prices were mixed after the USDA released its weekly exports report. Corn exports looked strong thanks to growing demand out of Mexico.

News that U.S. drought has diminished for the sixth consecutive week helped keep a lid on prices.

In addition, grain prices were still under pressure after the Federal Reserve raised interest rates yesterday.

Here’s what else you need to know from the Chicago Board of Trade.

Prices Move Higher after Corn Exports

December corn futures prices added 1.75 cents to end the day a tick below $3.65 per bushel.

The March corn contract added 1.5 cents to close at $3.765.

The USDA reported Thursday morning that net corn sales came in at 1.71 MMT for 2018/2019.

For 2019/2020, the agency cited net sales reductions of 9,700 MT from Mexico.

For the week, export figures hit 1.36 MMT.

The top five destinations were Mexico (342,700 MT), Japan (272,500 MT), Egypt (163,500 MT), Taiwan (139,300 MT), and South Korea (129,700 MT).

Today, the International Grains Council hiked its 2018/19 world production estimate to 1.074 billion metric tonnes. That figure is up 10 MT from previous weeks. The group also announced that ending stocks would be 261 MMT, an uptick of 5 MMT.

Soybean Contracts Pushed Higher

Stronger USDA export data helped push November 2018 up 5 cents to close at $8.55. Meanwhile, January futures contracts added 5.25 cents to end the day at $8.69.

On Thursday, the USDA reported net sales of 870,700 MT for 2018/2019.

For 2019/2020, the agency reported net sales of 1,500 MT for Japan.

For the week, the agency reported soybean exports of 819,200 MT.

The top five destinations for U.S. soybeans were Spain (104,600 MT), Mexico (103,300 MT), the Netherlands (103,200 MT), Egypt (81,800 MT), and Saudi Arabia (72,000 MT).

The International Grains Commission estimates that global soybean production would come in at 370 MMT. That figure represented a 4 MMT increase from the previous estimate.

The IGC also said that ending stocks came in 52 MMT, a figure that represented a 1 MMT increase from the previous estimate.

Wheat Prices Decline

In Chicago, December SRW wheat contracts shed 4.5 cents to end the day at $5.13 per bushel. The March 2019 contract shed 5.25 cents to end the day a tick under $5.31 per bushel.

December HRW contracts shed 3.5 cents to end the day at $5.175 per bushel. March 2019 contracts shed 3.75 cents to end the day at $5.405 per bushel.

Minneapolis spring wheat process added 2.5 cents to close at $5.81. March 2019 contracts added 2 cents to finish at $5.94.

This week, the USDA reported net sales of 657,100 MT of wheat for 2018/2019. That figure is up 40% from the previous week. The figure is 59% higher than the 4-week average.

The agency also reported exports of 483,700 MT. The figure is a marketing-year high that is 54% higher from the previous week. The figure was 35% higher than the 4-week average.

The top five destinations for U.S. wheat were Mexico (79,400 MT), Italy (59,400 MT), Thailand (58,200 MT), Taiwan (48,800 MT), and Guatemala (40,000 MT).

Today, Japan announced the purchase of 109.150 MT of U.S, Canadian, and Australian wheat.

The International Grains Commission announced that 2018/19 global wheat production will hit 717 MMT. That figure is a 1 MMT increase from the previous estimate.

The group also announced that ending stocks would come in at 250 MMT, a figure that is 2 MMT higher than its previous estimate.

 

 

About the Author
Garrett Baldwin

Garrett Baldwin is a content strategist and editor at FarmLead. He covers the global grain markets and public policy issues related to the agricultural industry. He is a graduate of the Medill School of Journalism at Northwestern University. He also holds a Master’s Degree in Economic Policy from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University, and an MBA in Finance from Indiana University.

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