Corn: 1 to 2 better
Soybeans: 2 to 3 cents lower
The corn market closed lower yesterday as it was unable to find buyers even with what was a positive ethanol production report. With the positive improvement in ethanol production, there is still fear that the resurgence of COVID-19, the economy has the potential to shut down again and gasoline demand would be limited. The U.S. ethanol production saw an increase to 282 million gallons/week from 267 million gallons the week previous. Corn is trading steady to better this morning as traders wait for the export sales report to be released. There continues to be concerns of an oversupply of corn in the U.S. and the world.
The soybean market closed lower yesterday. There were no new Chinese sales announced for the second day in a row. As we head into August this weekend, the U.S. weather forecasts look favorable, which has been discouraging fund buying and is keeping downward pressure on the soybean prices. The soybean market is trading lower this morning ahead of the export sales report.
We did just see a flash report of an export sale of corn to China for new crop of close to 2 million metric tons, or a little less than 80 million bushels. This is a BIG purchase from China.
Reminder: The Ralston elevator is closed to inbound trucks today due to electrical work.