- US markets – soy lower on higher US stocks & rains forecast for Argentina. Corn lower after early rally on cut in US stocks, S Am weather and cut in Chinese imports limited gains. Wheat lower after early rally on increased US/Global stocks & aggressive Egyptian tender results.
- USDA increases US wheat/soy stocks on lower exports, but lowers corn stocks on higher usage for ethanol. Global stocks all seen marginally higher m/m.
- S Am weather still has rains for southern areas of Argentina, with limited rainfall seen elsewhere and southern Brazil over this week. 10 day forecast still keeps average/above average rainfall for most of Argentina/South Brazil with tropical rainfall in Northern Brazil.
- Brazilian crop agency CONAB raised its forecast for soybean production in the 2017-18 growing season to 109.2mln t on an increased planted area. Total corn crop was projected at 92.2mln t, up from their provisional range of 91.6-93.1mln t made in November.
- China’s Ag Ministry sees 2017-18 corn output at 215.89mln t vs previous forecast of 210.11mln t. Imports seen 500,000t down from previous forecast with ending stocks seen in deficit of 4.57mln t.
- Egypt’s GASC purchased 295,000t of wheat for 21-31 January shipment (235,000t Russian / 60,000t Romanian). First non-Russian wheat cargo taken by GASC since August 29th – the one French cargo offered was about $20 too expensive ($15 fob and higher freight rate).
- Russian exports of wheat increased to 24.5mln t in the first 10 months of 2017, up from 19.9mln t a year earlier, official customs data showed.
- France’s farm ministry estimated the area sown with winter soft wheat for the 2018 harvest at 5.028mln ha, in line with this year’s figure.
Last Trade Settlement:
London May ’18 Settle £141.55/t – down £0.40/t from previous close
Paris May ’18 Settle €164.75 – up €0.50/t from previous close
CBOT Mar ’18 Corn Settle $3.4775/bushel – down 1.25 cents/bushel from previous close
CBOT Mar ’18 Wheat Settle $4.1075/bushel – down 2.75 cents/bushel from previous close
GBP EUR 1.1360
GBP USD 1.3345
EUR GBP 0.8800
EUR USD 1.1745