** 6:30 AM CDT CBOT Prices: Nov soybeans are down 1.5 cents at $9.8325, Dec corn is down 1 cent at $3.49 while Dec Chi wheat is down 2 cents at $4.3275.
** AgResource AM Grain & Oilseed Comment: Good Morning! It’s been a mostly lower overnight session of trade, with both summer row crop prices and US wheat futures slipping lower in light trading. Enthusiasm in the CBOT trade has eased since the October Crop Report.
The volume of trade has declined from recent days with just over 7,600 contracts of December corn, just over 9,000 contracts of November soybeans, and just over 3,500 contracts of Dec Chi wheat changing hands. Funds appear hesitant to press positions as harvest passes the halfway point.
Tuesday’s CBOT open interest data showed a 1,441 contract decline in corn, a 2,292 decline in soybeans, and a 1,385 contract decline in CBOT wheat. Bean meal open interest rose by 1,869 contracts, and soyoil was down 1,385.
In other world ag markets, Malaysian palmoil closed 21 ringgits lower at 2,730 RM/MT while Paris wheat is down €0.50 at €162.00/MT. Dalian soymeal futures followed Chicago lower, while corn futures traded quietly and ended lightly mixed at midweek.
China’s CNGOIC reported that inventories of Chinese soyoil this week totaled a record large 1.6 MMTs at major crushers, versus 1.3 MMTs a year ago. Record large soybean imports and crushing rates, amid strong demand for livestock feed are staying ahead of domestic demand for vegoil. Chinese cash soyoil prices have fallen 6-7% in the last month, while cash soymeal prices the autumn holiday have moved to a 6 month high.
Also from China, a government auction for corn reserves, had sales of 10,497 MTS out of 130,503 MTs that were offered (8%), with an average sale price of $194.92/MT. An auction for government owned rice stocks saw sales of just 6,787 MTs out of 478,518 MTs that were offered.
Other world trade news overnight included 65,000 MTs of corn sold optional origin to S Korea for $188.50/MT, and Algeria bought 660,000 MTs of milling wheat for $210 and $212.50/MT.
S American weather and soybean planting progress will be closely watched in the upcoming weeks, but the forecast this morning has rains falling across the Southern regions into the end of the month, and it’s still too early in the season for crop concern.
Fundamentally, corn and soybean supplies are on the rise, as harvest across the Midwest advances. December corn has been caught in a range of $3.44-3.62 since late August, and that broad range looks to continue into the end of this month. Last week’s post crop report rally in soybeans has stalled, and the market is now aiming for key support at $9.75. Confidence in large US corn and soybean yields is building following the October crop report, and our view is to use strong rallies to add to both old and new crop sales.