Grains
Grain prices this morning are mixed with Dec corn -0.25 (-0.07%), Nov soybeans +3.75 (+0.39%), and Dec wheat +2.75 (+0.62%). Grains on Tuesday settled mixed with Dec corn and Nov soybeans at 1-week lows: Dec corn -6.00 (-1.68%), Nov soybeans -9.50 (-0.9%), Dec wheat +7.25 (+1.67%). Corn prices fell after the USDA in Tuesday’s WASDE report unexpectedly raised its U.S. 2017/18 corn production estimate to 14.185 bln bu, higher than expectations of a cut to 14.003 bln bu as they raised their yield estimate to 169.9 bu per acre, higher than expectations of a cut to 167.9 bu per acre. The USDA also unexpectedly hiked its U.S. 2017/18 corn ending stocks estimate to 2.335 bln bu, more than expectations of a cut to 2.125 bln bu, and raised its global 2017/18 corn ending stocks estimate to 202.47 MMT, higher than expectations of a cut to 197.8 MMT. Soybeans moved lower after the USDA unexpectedly hiked its U.S. 2017/18 soybean production estimate to a record 4.431 bln bu, higher than expectations of a cut to 4.322 bln bu, as they raised their yield estimate to 49.9 bu per acre, higher than expectations of a cut to 48.7 bu per acre. Wheat rallied after the USDA lowered its global 2017/18 wheat ending stocks estimate to 263.14 MMT, lower than expectations of a cut to 264.3 MMT. On the negative side, the USDA kept its U.S. 2017/18 wheat ending stocks estimate unch at 933 mln bu, higher than expectations of a cut to 914 mln bu. On Monday, SovEcon boosted its Russia 2017 wheat crop estimate to a record 81.1 MMT from a previous estimate of 78.9 MMT. Chinese demand for soybeans is robust as China Jul soybean imports climbed to a record 10.08 MMT and Jan-Jul China soybean imports are up +16.8% y/y at 54.89 MMT. Monday's USDA Crop Progress report showed 95% of the U.S. spring wheat crop has been harvested as of Sep 10, +8 points above the 5-year average. Monday's Crop Progress report also showed 61% of the U.S. corn crop in good-to-excellent condition as of Sep 10, unch w/w and well below last year's level of 74%. The condition of the U.S. soybean crop 60% in good-to-excellent condition, down -1 point w/w and well below last year's 73%.