Good morning!
There was not an overnight trade session last night, so when the markets open at 8:30am this morning it will be the first time they have traded since noon on Tuesday. Opening calls vary, but most of them are looking for a steady/weaker tone to start the day and they blame good weather in South America. No surprises there.
It was reported this morning that China has turned away around 2,000 MT of U.S. dried distillers grains and that more rejections are expected in the coming weeks. Traders had been nervous this would happen after hearing not long ago that they would start testing it. China is the world’s largest buyer of U.S. DDGs, accounting for about 40% of all DDG exports last year. This situation is a little tricky – when the corn was rejected they were mostly able to switch the cargoes to other destinations but with DDG’s, they are not widely used in the rest of Asia in their animal feed which makes it difficult to figure out where these rejected cargoes will go. In a positive note, this should support soybean meal and keep domestic soybean crush margins firm.
Also just for fun, I ran the math: 2,000 MT = 4,409,200 lbs = around 80 truckloads. Doesn’t sound like much when you say it that way…
Opening Calls
Corn steady to down 1c
Soybeans mixed
Have a great day!
Dustin Weiner
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