Weekly corn export sales were slower than expected, coming in at 30 million bushels for the week. The average trade guess was 38 million bushels. With only 4 weeks remaining in the crop year, export sales and more important and appear to be falling behind the average needed to meet the USDA’s target of 1.850 billion bushels.
Weather remains at front and center and the six- to 10-day models offer up at least minor relief for some of the driest areas of Illinois. But outside markets are at the point where they cannot be ignored any further by grain traders. We will need to keep a closer eye on the Baltic Freight Index going forward as we expect any continued strength in the U.S. dollar and weakness in equities (which we have forecasted for some time to continue without a QEIII package) to damage exports. We can’t buy this market here.
We look for corn to open 10 to 14 lower and soybeans to open 15 to 20 lower.
Daily CME spot market prices:
Block cheese: $2.1325 (down 1.75 cent)
Barrel cheese: $2.13 (unchanged)
Butter: $2.1025 (unchanged)
Grade A NFDM: $1.51 (unchanged)
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