USDA increased its soybean export forecast, lowering year ending stocks. Ending stocks remain at a multi-year large however, with strong production expected from South America. Corn ethanol production hit a marketing year high this week but USDA’s production forecast was left unchanged, presumably due to an expected decline from low oil prices squeezing crushing margins. Corn prices are expected to trade in a sideways pattern around $4 as farmers hold onto their grain and look for more favorable selling opportunities.
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