Grain Tidbits - September 27, 2018

10:07 AM 9/26/2018

Harvest keeps trying to move along in our area, along with most of the US growing areas.   According to the 6 to 10 and 8 to 14 day forecasts we can expect above average precipitation for the entire country.  Harvest reports still are coming in nationwide at high production numbers.  There seems to be a thought in the trade that USDA is too high on corn yield, and light on soybean yield.  Friday's report shouldn't reveal any real surprises.  There is also talk that as much as 5 million metric tonnes of Canadian spring wheat is at risk of being downgraded due to inclement weather.

Demand seems to be solid for most commodities.  There has been soybeans sold to Argentina, due to their overselling their production to China.  Brazil is also tapped out of soybean stocks, leaving the US with the main source of any supply.  I read a report this morning that Canada has purchased soybeans from the US, and in turn selling to China.  Also cheap prices made for a sale of nearly 24 million bushels sold to Mexico this week.

In corn, end users seem to be trying to bottom pick.  There is a growing feeling amongst the grain trade that the market may be putting in a multi-year low.  Corn export sales were very good this week at 1.71 million metric tonnes.

The wheat market has drifted lower this week with traders  looking for USDA to raise wheat production in the small grains report, and for quarterly stocks to reflect ample supplies. Report estimates are in a range from 1.848 to 1.907 billion bushels. The Canadian wheat crop is possibly going to be having quality issues with snow falling on unharvested wheat in the western prairies earlier this week. There was finally a good export amount this week at 657,000 million metric tonnes (21,900,000 bushels).

Thanks & have a great weekend!

Jim Gallagher

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