03/03/2023 Markets Absorbing Trade Estimates for Mar. 8 WASDE Update

On the Grains: Markets are steady-to-mixed in overnight trade as we go to press. Positioning is already beginning for next week’s WASDE updates from USDA. Yesterday’s markets were on the defensive shortly after weekly export sales were released. Corn sales were especially poor at only 598,000 tonnes and towards the low end of expectations that ranged from 500K to a million tonnes. Ditto for beans, also coming in towards the low end of expectations. Wheat sales were so-so, at least coming in the middle of trade expectations.News on the domestic demand front for corn and soybeans wasn’t helpful either. YTD ethanol use of corn is down 5.8% vs. USDA’s forecast for only a 1.4% decline. Despite excellent crush margins keeping bean basis strong, Oct. through Jan. crush was actually 2.12% below a year ago despite the current USDA forecast for it to be 1.2% higher by the end of the season. Nonetheless, beans managed to close with decent gains yesterday. They got a lift from higher product values, particularly soy oil. There is some concern about flooding in Malaysia pushing up palm oil and yesterday the DOE put out encouraging news on renewable diesel capacity. They said U.S. plant capacity…