Morning Grain Comments 8/31
News of no export measures from Russia took a quick dime out of the wheat market this morning, but other than that, the overnight session was short on excitement; the grain trade may be looking to get into the long holiday weekend at status quo, though “status quo” has and likely will mean something entirely different for soybeans than corn or wheat…
Russia is expecting grain production at just 70-75 million tonnes, down from a record 94.2 MMT in 2011, with steadily lower estimates for the current drought-ravaged crop since late July. However, their government did not put any export bans or measures in place at this morning’s meeting; they still believe there will be sufficient stocks to export 10-14 MMT in 2012/13.
China sold all 401,419 tonnes of its state soybean reserves offered up in their latest bi-weekly auction yesterday, with the average price at a new record 4,550 yuan per tonne ($719/tonne, $19.57/bushel) price.