Today’s Grain Future

Corn futures closed ½ to 10 ¾ cents lower today. The weakness was confined primarily to the July contract. The weekly EIA ethanol report showed a slowdown in average daily production to 863,000 bpd. That was down 12,000 bpd from the prior week. Ethanol imports were recorded for the first time in 5 weeks, but ethanol stocks still declined to 16.0 million barrels. Gasoline consumption was the largest since August 2012, supporting ethanol use. Much of the selling interest in the July was index fund related as we enter the roll period for getting out of July longs. The trade is looking for net weekly export sales to be in the 500-800,000 MT range when released by USDA in the morning.

Jul 13 Corn closed at $6.54 1/4, down 10 3/4 cents,
Sep 13 Corn closed at $5.91 3/4, down 2 cents,
Dec 13 Corn closed at $5.62 3/4, down 3 cents
Mar 14 Corn closed at $5.72 3/4, down 3 cents

Soybean futures held on to most of their gains, with July 6 cents lower and November up ¾ cent. While there is plenty of time to plant soybeans in the US (most prevent plant dates are June 10 or later), the wet conditions in the central US are a threat to total acreage. There is also concern that late maturity of the wheat crop will result in fewer double crop acres. USDA weekly export sales data will be delayed until Friday because of the Monday federal holiday. Trade expectations are in the 300-800,000 MT range, with some old crop cancellation activity expected. This morning, private exporters reported to the USDA soybean export sales totaling 120,000 MT to China for the 2013/14 marketing year.

Jul 13 Soybeans closed at $14.95 3/4, down 6 cents,
Aug 13 Soybeans closed at $14.26 3/4, down 2 1/2 cents,
Sep 13 Soybeans closed at $13.34 1/4, up 2 3/4 cents,
Nov 13 Soybeans closed at $12.89 1/4, up 3/4 cent,
Jul 13 Soybean Meal closed at $440.80, down $3.50,
Jul 13 Soybean Oil closed at $48.58, down $0.05

Wheat futures lost 4 ¼ to 11 cents in Chicago today. KC was down 1 ¾ to up 1 cent. MPLS was ¼ lower to 2 cents higher. Japan cancelled a white wheat purchase tender due to the discovery of non-approved GMO wheat in an Oregon field. Japan bought 117, 035 MT of milling wheat, with 53,080 coming from the US. Planting delays are still supporting MPLS and to a degree KC wheat. Trade guesses for USDA weekly Export Sales report in the morning run 300-700,000 MTs. Nearly all of that total will be new crop, as the old crop marketing year ends Friday for wheat. The Export Sales report will be through May 23, so there is the possibility of some immediate shipment old crop business.

Jul 13 CBOT Wheat closed at $6.98 3/4, down 4 cents,
Jul 13 KCBT Wheat closed at $7.46, down 1 3/4 cents,
Jul 13 MGEX Wheat closed at $8.15 1/2, down 1/4 cent