Soybeans, Corn Lower in Overnight Trading; USDA Expected to Lower Carryout Estimates
(Agriculture.com) – SOYBEANS, GRAINS LOWER OVERNIGHT ON POSITION SQUARING AHEAD OF WASDE
Soybeans and corn were lower in overnight trading ahead of today’s World Agricultural Supply and Demand Estimates Report from the U.S. Department of Agriculture.
Futures have a bearish tone even as the USDA is expected to lower corn ending stocks by 20 million bushels, wheat inventories by 6 million bushels, and soybeans carryout by 10 million bushels, according to Allendale’s Paul Georgy.
Still, the agency is expected to raise its corn-production outlook for Brazil. Argentina’s corn and soybean crop projections are expected to be lowered from last month’s outlook, Georgy said.
Soybean futures for March delivery fell 5¼¢ to $10.53½ a bushel overnight on the Chicago Board of Trade. Soy meal lost $2 to $339.20 a short ton, and soy oil declined 0.04¢ to 34.65¢ a pound.
Corn lost 1¼¢ to $3.69½ a bushel in Chicago.
Wheat futures for March delivery fell 2¢ to $4.30½ a bushel. Kansas City futures declined 2¼¢ to $4.39¾ a bushel.
USDA LIKELY TO LOWER CORN STOCKS SLIGHTLY, SOYBEANS SEEN DROPPING
The Department of Agriculture in its monthly WASDE Report today is expected to lower its outlook for 2016-2017 ending stocks in corn only slightly while more drastically cutting its outlook for soybean inventories.
Corn carryout at the end of the marketing year on August 31 likely will be pegged at about 2.33 billion bushels, down from 2.36 billion last month, analysts said. U.S. soybean inventories will probably be estimated at 407 million bushels, well below the January estimate of 420 million due to strong demand from overseas buyers.
The USDA is expected to raise its outlook for Brazilian corn production by about 1 million metric tons to 87.5 million, analysts said. Soybean output in the country likely will be little changed at about 104 million tons.
Argentine corn output will total about 36 million metric tons, down from 36.5 million tons, while soybean production will probably be seen at about 55 million tons, down from 57 million in January.
The USDA’s estimate for global ending stockpiles of corn will likely be little changed at 221 million tons, while soybean inventories will probably be pegged at about 81 million tons, down from 82.3 million last month.
BITTER COLD FOLLOWS STORMS IN ILLINOIS, INDIANA, OHIO
Cold weather is following up a storm that slammed parts of the Midwest as it head off to the East Coast this morning.
In parts of Iowa and Illinois, temperatures are forecast to be as low as -10˚F., according to the National Weather Service.
Temperatures are expected to be in the teens this morning in much of Indiana and southern Michigan, following yesterday’s storm. That will likely lead to slick roads this morning, especially on side streets and untreated surfaces, the NWS said. Wind chills are expected to be about 0˚F. today.
The extreme cold also is expected in parts of Ohio, where wind chills today and tonight are forecast to be as low as -10˚F., according to the NWS.
