General: Grain prices were mixed but mostly higher Wednesday after soybeans captured another round of double-digit gains. Corn prices firmed nearly 1% as well, briefly testing the $5 benchmark that hasn’t been seen since 2014. Wheat prices faded, in contrast, with some contracts losing nearly 1% on a round of profit-taking and technical selling.
CME has not confirmed any Jan soymeal or oil deliveries. The trade is looking for 400-800k MT of old crop bean bookings in tomorrow’s Export Sales report. New crop soybean sales are expected to be 100k to 300k MT. The range of estimates for soymeal is 75,000 to 250,000 MT, and 20k to 60k MT for soybean oil. USDA’s Ag Attaché lowered their Argentine soybean production forecast to 50 MMT from 51 MMT LM. Post cited dryness, saying the recent improvements reduced their production cut to just 1 MMT. The Urgara inspectors union in Argentina is still on strike. CME increased the soybean futures maintenance margins by 17.9%.
USDA reported a large export sale under the daily system for 102,616 MT of old crop corn sold to unknown destinations. Turkey issued an international tender seeking 155k MT of corn. EIA data showed an uptick in average daily ethanol production. Midwest producers averaged 2k bpd less, but that was offset by increased production in the Gulf. Nationally, producers averaged 935k barrels per day which was a 1,000 bpd increase wk/wk. Ethanol stocks declined 220k barrels to 23.284 million. Corn Export Sales estimates are for 0.6-1.2 MMT for the week ending December 31. CME increased the corn futures maintenance margins by 17.9%.
Wheat bookings ahead of tomorrow’s Export Sales report are estimated between 250k and 500k MT. Trade ideas about December 1 wheat stocks are beginning to surface, in the 1.68-1.71 billion bushel range. Japan issued a 120,000 MT tender for optional origin wheat. Ethiopia reportedly canceled 600k MT of wheat purchases made in November. The Russian government issued decrees No. 2097 and No 2096 establishing a grain export TRQ of 17.5 MMT from February 15- June 30. Wheat export tariffs in the quota are 25 Euros/MT, and the out of quota rate is 50% but no less than 100 Euros/MT.
PRICE MOVEMENT ON CBOT JAN 06