Today grain future

Corn futures did little today, other than posting another gain in the July contract. Margins for ethanol plants have improved to as much as 50 cents per bushel. There were zero deliveries against July corn futures overnight. Weekly US ethanol production report showed a slowdown to 863,000 bpd last week from 885,000 the prior week. The reduced production drew down ethanol stocks to 15.445 million barrels and is supporting ethanol prices. That is the tightest weekly stocks level since EIA began reporting it back in 2010. A Memphis based forecasting firm is now seeing average yield of 160 bushels, and projecting a US crop of 14.26 billion bushels. That would be up 3.5 billion from last year’s drought damaged crop. The firm also sees a jump of 144 million bushels in sorghum production, to 391 million bushels.

Jul 13 Corn closed at $6.78 1/4, up 5 1/2 cents,
Sep 13 Corn closed at $5.32 1/4, down 3/4 cent,
Dec 13 Corn closed at $5.02 3/4, unch,
Mar 14 Corn closed at $5.14 3/4, unch

Soybeans settled 3 ¾ to 10 ½ higher today. There were zero delivery notices vs. soybeans or July meal last night. The oldest July bean long is from September 2012. European forecast firm Oil World cut its projected Chinese oilseed production estimate by 2 MMT for 2013/14 to 48 MMT. If accurate, this reinforces ideas of larger Chinese oilseed imports in the upcoming marketing year. A Memphis based forecasting firm is now calling for US soybean production to be 3.38 billion bushels in 2013, with a near record national average yield of 43.9 bushels per acre.

Jul 13 Soybeans closed at $15.83 1/2, up 10 1/2 cents,
Aug 13 Soybeans closed at $14.41 1/4, up 7 3/4 cents,
Sep 13 Soybeans closed at $12.97 1/2, up 3 3/4 cents,
Nov 13 Soybeans closed at $12.50 3/4, up 8 1/4 cents,
Jul 13 Soybean Meal closed at $490.60, up $3.60,
Jul 13 Soybean Oil closed at $47.22, up $0.30

Wheat futures closed 3 to 8 ¼ cents higher in Chicago. KC was up as well. MPLS settled ½ lower to 4 ¼ higher, with July bouncing back from double digit losses earlier in the week. Yield reports are all over the place, while generally at least meeting expectations. USDA confirmed that China bought 360,000 MT of US SRW for shipment during the current marketing year. Japan bought 42,910 MT of US feed wheat in an SBS tender, for shipment by October 31. Memphis based Informa reduced its US wheat production estimate to 2.016 billion bushels, which is lower than the USDA June figure of 2.080 billion, and requires lower average yields since USDA hiked acreage in the June 28 reports.

Jul 13 CBOT Wheat closed at $6.57 3/4, up 8 1/4 cents,
Jul 13 KCBT Wheat closed at $6.84, up 10 cents,
Jul 13 MGEX Wheat closed at $7.61 1/4, up 4 1/4 cents