Corn is down 2 and soybeans are up 10 to start this Thursday morning.
StoneX yesterday estimated U.S. corn yields at 175.7 bushels per acre, up from 175.5 bpa last month, with production implied at 15.302 billion bushels, 238 mbu above the USDA October figure. Soybean yields fell slightly from 50.4 to 50.3 bpa, with production at 4.162 bln bu, 58 mln bu above the USDA.
China is reportedly buying significant volumes of wheat lately to make up for a damaged domestic drop and global weather concerns; traders see bookings from Australia at around two million tonnes this month, and purchases of French wheat at around 2.5 MMT since September. China imported a record 9.96 MMT of wheat in calendar 2022 but imports are expected to top that by around 2 MMT in 2023 and continue well into 2024. Jan-Sept imports are up 54% to 10.17 MMT already, according to Chinese customs data, including 6.4 MMT from Australia and 1.8 MMT from Canada.
Despite the continued drop in CBOT values the US is still not the cheapest grain available to the world market. We will continue to make small sales, but baring any dramatic weather issues in South America our sales will be limited.
Producers should continue to sell corn out of the field as prices do not look to move significantly higher anytime soon. Producers should also be looking at next falls prices and target locking in $5 corn when/if it gets there.
Have a Safe Day!