- CBOT wheat, soybeans and meal all closed in the red whilst corn bucked the trend by closing marginally higher. Throughout the day markets markets have traded either side of unchanged possibly indicating the state of mind which traders have in the absence of official data and information. There has been only limited farmer selling in the US leading to consumers bidding up and nearby markets have reacted accordingly.
- In the absence of official US data we are pleased to add Brazilian information provided by CONAB to flesh out tonight’s report: the 2013/14 wheat crop is estimated at 4.77 million mt, down from 4.95 million mt last month whilst corn is seen in the range 78.4-79.6 million mt, down from last year’s 81.3 million mt. Soybean output is estimated in the range 87.6-89.7 million mt, a sizeable increase from last year’s 81.5 million mt.
- Additionally we have Lanworth’s latest 2013/14 crop estimates; world soybean output at 286 million mt, a 2 million mt increase month on month, the US accounting for 3.16 billion bu, an increase month on month from 3.112 billion bu. Their global corn estimate comes in at 953 million mt, a 4 million mt increase month on month of which their US figure is 13.708 billion bu, up from13.483 billion bu last month.
- We continue to hear reported US harvest data exceeding earlier expectation which will no doubt cap rallies for the time being. One final snippet comes from Reuters, who report that an Ohio based ethanol plant which has been idle for five years is to restart next week. The Three Rivers Energy owned plant has the capacity to produce 50 million gallons of ethanol from 36 million bu of corn, and is reported to be taking corn delivery from the middle of next week. Is this an example of reduced corn prices stimulating the ethanol industry in the US?
- I will be travelling for the next two days, in the Republic of Ireland, and anticipate limited internet access. Consequently reports and information may well be limited for which I apologise in advance. I will endeavour to catch up upon my return. At least there seems to be no USDA report to comment upon on Friday!