Another mixed grain trading day
A mixed trade is seen for the CME Group corn, soybean and wheat markets Thursday.
The Early Calls for the commodities on Thursday, February 23, 2012, are mostly lower. Corn is seen opening 1-2 cents lower, soybeans 3-5 cents higher and wheat 2-4 cents lower.
In overnight trading, the March corn futures contract traded 1/2 of a cent lower at $6.37 3/4 per bushel. March soybean futures traded 3 1/4 cents higher at $12.75 1/2 per bushel, and March wheat traded 2 1/2 cents lower at $6.42. For March soybean meal futures, the contract traded $0.20 per short ton higher at $331.50. March soybean oil futures traded $0.07 higher at $54.29.
The outside markets are favorable for Thursday's grain trade. The real factors driving the calls will be the mixed overnight markets.
USDA announces Thursday that China bought 120,000 mt of U.S. corn for 2011-12 delivery. Also, an 'unknown' buyer purchased 110,744 mt of U.S. corn for 2011-12 delivery.
On Thursday, the USDA released updated U.S. crop projections at its annual Ag Outlook Forum in Washington, D.C.
USDA estimates the 2012 U.S. corn acres at 94 million acres, soybeans at 75 million and wheat at 58 million acres.
Meanwhile, other Ag Outlook Estimates include:
--Average 2012-13 corn price is pegged at $5.00 per bushel.
--Avg. 2012-13 soybean price is estimated at $11.50 per bushel.
--Avg. 2012-13 wheat price is estimated at $6.30.
--Fiscal year 2012 U.S. ag exports are expected to be the 2nd highest on record.
--Corn use for ethanol is seen dropping by 4.95 billion bushels.
--Corn stocks are seen rising due to a drop in overall ethanol production.