05/25/2023 Markets Steady to Weak on Pessimistic Export Sales Expectations

On the Grains: Grains are steady to soft in overnight trade as we go to press, mostly on somber expectations for the weekly export sales due at 7:30 this morning. Traders are bracing for the possibility all three crops could see cancellations exceeding new sales. Expectations for corn range from a net decline of 500,000 tonnes to as much as 400K in net sales. For soybeans, they range from a negative 50K to as much as 300K and for wheat from a negative 75K to as much as 100K to the positive side. The short term outlook for warm and dry conditions over most of the Corn Belt into next week are slightly supportive for corn but less so for beans. We’ll get the first set of weekly crop “ratings” for corn next Tuesday since the Memorial Day holiday will delay the weekly Crop Progress Report by a day. The trade sensitivity to even a short-term warm dry outlook shows awareness that with USDA already projecting record yield potential for both corn and beans even the hint of adverse weather puts those yields in question. Wheat remains under pressure from what’s seen as improving weather for spring wheat country and…