Grains
Grain prices this morning are mostly higher with Dec corn unch, Nov soybeans +3.25 (+0.33%), and Dec wheat +0.50 (+0.12%). Grains on Thursday settled mixed: Dec corn +3.00 (+0.87%), Nov soybeans +26.75 (+2.77%), Dec wheat -2.75 (-0.63%). Dec corn on Thursday rebounded from a 1-month nearest-futures low up to a 1-week high as they followed soybean prices higher. Corn also garnered support from the USDA's cut in its global 2017/18 corn ending stocks estimate to 201 MMT, a bigger cut than expectations of 201.2 MMT. Overall, Thursday’s WASDE report was bearish for corn as the USDA unexpectedly raised its U.S. 2017/18 corn production estimate to 14.28 bln bu, higher than expectations of a cut to 14.171 bln bu. The USDA also raised its U.S. 2017/18 corn ending stocks estimate to a record 2.34 bln bu, higher than expectations of a cut to 2.251 bln bu. Nov soybeans rallied to a 2-1/2 month nearest-futures high after the USDA in Thursday's WASDE report kept is U.S. 2017/18 soybean production estimate unch at 4.431 bln bu, less than expectations of an increase to 4.437 bln bu, and cut its U.S. 2017/18 soybean ending stocks estimate to 430 mln bu, a bigger cut than expectations of a cut to 452 mln bu. The USDA also cut its global 2017/18 soybean ending stocks estimate to 96.05 MMT, a bigger cut than expectations of 96.7 MMT. Dec wheat tumbled to 1-month low after the USDA in Thursday's WASDE report hiked its U.S. 2017/18 wheat ending stocks estimate to 960 mln bu, higher than expectations of 944 mln bu, and raised its global 2017/18 wheat ending stocks estimate to 268.1 MMT, higher than expectations of a hike to 263.4 MMT. Last month, SovEcon boosted its Russia 2017 wheat crop estimate to a record 81.1 MMT from a previous estimate of 78.9 MMT. Chinese demand for U.S. soybeans is robust as China Jan-Aug China soybean imports of U.S. soybeans are up +18.5% y/y to 19.741 MMT. Tuesday's Crop Progress report showed 22% of the U.S. corn crop was harvested as of Oct 8, -15 points below the 5-year average of 37%. 36% of the U.S. soybean crop has been harvested as of Oct 8, -7 points below the 5-year average of 43%.