Corn was lower today as plentiful supplies and prospects for a large increase in planted acres this year weighed on the market. CH settled 2 cents in the red, CK shed 2 ½ cents, and CZ was down 2 ¼ cents. Commodity funds were sellers of a modest amount of corn today with total sales as of midday estimated at 3000 contracts. The corn market is currently suffering from a general lack of buying interest in commodities in general. Plentiful world and U.S. feed grain ending stocks are limiting buying enthusiasm. The USDA will release its preliminary 2020/21 balance sheets, including corn, tomorrow morning as it wraps up the Ag Outlook forum. Traders expect corn ending stocks to be projected near 2.4 billion bu., a number that would act as an anchor on the market should it eventually materialize. This morning planted acreage projections for 2020 were released as the forum opened including 94 million corn acres which was in line with trader expectations. Otherwise, fresh market-moving news was limited. The weekly EIA energy report showed last week’s ethanol production up 0.7% from the previous week. However, ethanol inventories increased again last week, to a record high level. A slow-down in ethanol production would seem likely in the near future as firms attempt to draw down excessive inventory. Tomorrow’s export sales report is expected to show last week’s corn sales near 35 million bu.
Soybeans were modestly lower today, with SH and SK each 4 ½ cents weaker, and SX down 5 ½ cents. Beans were pressured today by light commodity fund selling - estimated at 3000 soybean contracts as of midsession - and by the large southern hemisphere crop expected from Brazil, Argentina, and Paraguay. The USDA at its Ag Outlook Forum, released its 2020 planted acreage estimates this morning, including soybean acreage of 85 million which equaled trader expectations. Ag Secretary Perdue said today that he expects that China will comply with the terms of the Phase 1 trade agreement but did not indicate a timetable for purchases. Moderate to heavy rains are expected across central and northern Brazil the next 7 to 10 days which will delay soybean harvesting in Mato Grosso and Goias. Tomorrow’s export sales report is expected to include old crop soybean sales near 33 million bu.
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