The three big commodities are trading close to unchanged this morning with corn and beans up a half and wheat down 1. Corn yields continue to be all over the board with the majority of them coming in higher than last years record numbers.
There is optimism over a new trade deal with Japan as the trade prepares for tomorrows September Grain Stocks and Small Grains report. The deal would substantially boost exports of beef, pork, wheat and a host of other ag commodities.
Tomorrow the USDA will release its quarterly stocks report for September. The fact that it comes at a month end could add to the volatility in the markets as traders look to position themselves ahead of the October business. Estimates for tomorrow’s numbers are 2.002 billion bushel for corn compared to 2.293 last year. Soybeans are estimated at 394 million bushel compared to 302 million last year. Wheat is estimated at a staggering 2.350 billion bushel compared to 2.266 last year. (Report will be released at 11am)
It is interesting to note aht while China openly turned its back on the US soybeans for more expensive beans out of Brazil, the total US inspection are running about 8% higher than this time last year. Despite these numbers traders will key in on the USDA’s forecast for a record production as long as the US and China remain at odds.
Have a Safe Day!