Cold snap on the north of the US Corn Belt animates the market, Agritel
Doubts about US yield levels are strengthening and the announcement of a cold snap on the north of the Corn Belt for the end of next week begins to animate the market, Agritel informs.
"The wait-and-see attitude is still in place before the October 10 USDA report, which will tell more about US corn and soybean production estimates," the consultancy reports.
The weekly corn export sales reached 562,000 t which is in line with expectations and well below last year. Soybeans, meanwhile, posted export sales well above expectations at 2.08 Mt with new sales to China, the report reads.
Soybeans and corn find support in anticipation of the Trump administration's plan with aids for the US biofuels industry. Easier consumer access to E15 should also be announced, which will support corn prices.
The wheat in Chicago yesterday found support after the announcement of a Chinese purchase of 130 000 t of white wheat. This is the first purchase of US wheat since last March and the largest purchase of US wheat by China for the last 3 years. However, the weekly export sales published yesterday by the USDA remained low as expected at 328 000 t.
Earlier it was reported that there was a contradiction between US analysts' corn estimates and farmers’ feedback, confirming lower yields than those reported last month by the USDA.