Chicago overnight wheat & corn lower
Wheat & corn are lower in the overnight market on follow through selling from last night's sharply lower close.
Despite the USDA crop condition report released after last night's close showing a 2 percentage point decline for wheat rated good/excellent (compared to expectations of a slight increase), traders are focussing on bearish export inspections & the prospect of a much larger world wheat crop.
Weekly wheat inspections of 22.4 mb are viewed as bearish. The U.S. needed 24.8 mb to be inspected this past week to be on pace with USDA's projection of 1.275 bb of export inspections for the 2007-2008 marketing year, with seven weeks left in wheat's marketing year the US need to ship out about 170 mb of wheat in order to match USDA's projection.
A sixteen percent increase in Canadian wheat plantings announced by Stats Canada yesterday is also weighing on the market this morning.
Weekly corn inspections are also viewed as bearish for corn. The USDA reported 36.2 million bushels inspected as of April 17, which was below the 46.9 mb needed that week to be on pace with USDA's projection of 2.5 billion bushels for the 2007-2008 marketing year. This was also below the range of estimates for corn export inspection, which was between 40 mb and 45 mb.
Wheat is around 7-9c lower at 10.00am Tuesday morning, whith corn down 1/4 to 3 1/4c.
Despite the USDA crop condition report released after last night's close showing a 2 percentage point decline for wheat rated good/excellent (compared to expectations of a slight increase), traders are focussing on bearish export inspections & the prospect of a much larger world wheat crop.
Weekly wheat inspections of 22.4 mb are viewed as bearish. The U.S. needed 24.8 mb to be inspected this past week to be on pace with USDA's projection of 1.275 bb of export inspections for the 2007-2008 marketing year, with seven weeks left in wheat's marketing year the US need to ship out about 170 mb of wheat in order to match USDA's projection.
A sixteen percent increase in Canadian wheat plantings announced by Stats Canada yesterday is also weighing on the market this morning.
Weekly corn inspections are also viewed as bearish for corn. The USDA reported 36.2 million bushels inspected as of April 17, which was below the 46.9 mb needed that week to be on pace with USDA's projection of 2.5 billion bushels for the 2007-2008 marketing year. This was also below the range of estimates for corn export inspection, which was between 40 mb and 45 mb.
Wheat is around 7-9c lower at 10.00am Tuesday morning, whith corn down 1/4 to 3 1/4c.
