Grains Mixed in the Overnight with Soybeans Turning Higher

Grains were mixed overnight with soybeans turning higher for the first time in 6 days while wheat and corn dipped lower. In outside markets, crude oil and the US dollar were lower in early trade.

USDA’s Ag Outlook Forum released carryout estimates for the 2017 US crops. Yesterday, USDA forecasted corn plantings at only 90 million acres, off 4 million from last year but this morning’s carryout projections show only a slim 105 MB drop in ending stocks to 2,215 MB from the current year forecast of 2,320. In soybeans USDA keep ending stocks the same year-on-year at 420 MB even with a 4.7 million acre increase as they expect soy yields to average 48 vs 52 last year. Wheat did see a sharp drop in carryout which USDA pegs at 905 MB for next year vs 1,138 this year.

In South America, rains favored central and southern Brazil yesterday benefiting drier corn/soy areas with harvest interruptions very limited. This weekend rains will shift to the drier NE. Central and west Brazil should have limited rains until mid next week aiding corn/soy harvest and safrinha seeding. Showers were isolated in Arg. corn/soy yesterday but late next week should see new moisture aiding corn/soy filling but raising risk of early harvest delays.

Export sales were disappointing for both corn and beans as old- and new-crop deals were below trade expectations.

Weekly Export Sales-

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