At 1pm:
The latest from Brazil and Argentina, according to my Brazilian source.
As of Thursday, he says, "Here in Brazil the weather condition is reasonable at this moment. Some states are having serious problems, especially on early-planted areas in Paraná and Mato Grosso. In these areas, the problem was the lack of rain in the growing moment of plants. Anyway, until now this hasn't been a big risk to production.
In South America, the biggest problem is in Argentina, because after a long period of rainfall through December, farmers are now dealing with drought. Farmers are concerned about the pre-sold soybeans, and whether they will have the grain supply.
As of January 10, 90.8% of soybeans were planted, and 88.5% area of corn too."
Mike
--------
At mid-session:
The March futures corn contract is trading 5 3/4 cents lower at $7.25. The March soybean futures contract is trading 12 cents lower at $14.24. March wheat futures are trading 6 cents lower at $7.78 per bushel. The March soyoil futures contract is trading $0.08 lower at $51.23. The March soymeal futures are trading $6.40 per short ton lowerat $412.70.
In the outside markets, the NYMEX crude oil is $1.13 per barrel higher, the dollar is lower and the Dow Jones Industrials are 95 points higher.
Better than expected rains in Argentina have trumped soybean export sales.
One analyst says, "The selling is just long liquidation today.
"People wondering if the bean sales are the high for the year, so selling a bit, plus I see Agroconsult talking 84.0 million tons of soybean production estimate for Brazil and they are the high. But, others are talking 82+ million tons. "
So, if you think we are about done with selling soybeans to the Chinese you might be selling futures now, he says.
Corn and wheat sales were ok and dry weather continues in the Great Plains. "More than expected rains in Argentina is a little negative but still very dry there. And an overall tight soybean situation all around for at least a while longer is still the best support," he says.
But, the market has had nice rallies since the report Friday, he says. And a nice rally for corn, since before the report. "So, some long liquidation should be expected sooner or later and it looks like it came now. Still think we go higher, maybe again next week," he says.
Mike
--------
At the open:
The March futures corn contract is trading 1/4 of a cent lower at $7.28. The March soybean futures contract opened 2 cents higher at $14.39. March wheat futures opened 1 cent lower at $7.83 per bushel. The March soyoil futures contract opened $0.16 lower at $51.16. The March soymeal futures opened $1.70per short ton higher at $420.80.
In the outside markets, the NYMEX crude oil is $1.14 per barrel higher, the dollar is lower and the Dow Jones Industrials are 62 points higher.
Mike
----------
At 9am;
--IGC ups its 2012-13 world corn output by 15 million tons, and wheat up 2 million tons.
Mike
------
At 8:15am:
Soybeans are up 7¢, after trading 5¢ lower before 7:30.
Mike
----------
At 8am:
On top of the bullish Weekly Export Sales Report, the USDA just announced a fresh sale of soybeans.
--On Thursday, an 'unknown' buyer purchased 240,000 mt of U.S. soybeans for 2013-14 delivery, according to the USDA.
What do you think? Is the 'unknown' buyer China or India?.
Mike
-----------
At 7:30am:
USDA released bullishWeekly Export Sales Report Thursday.
Corn=393,300 vs. the trade's expectations of 250,000-475,000 metric tons
Soybeans=1.79 millon metric tons vs. the trade's expectations of 550,000-750,000 mt.
Wheat= 574,700 mt vs. the trade's ideas of 275,000-425,000 mt
Soybean meal=245,100 mt vs. the trade's expectations of 75,000-150,000 mt.
Mike
----------
At 6:20am:
--Full story on a first in South America. Brazil corn exports surpass Argentina's.
--Strategie Grains Thursday lowered its estimate for the EU's 2013-14 soft wheat harvest by 1.9 million tons to 132.23 mt. This same analyst group dropped the EU's corn output by 0.2 mt to 62.8 mt.
--S. Korea buyer passed Thursday on 70,000 mt of feed wheat.
--Ukraine's grain exports for 2012-13 have been estimated to drop 4% vs. a year ago. Still amply stocks available, according to the Dow Jones Newswirw.
--Japan buys 118,746 tons of U.S., Canadian wheat for Feb-March delivery.
Mike
---------
At 6:10am:
Early calls: Corn is seen 2-4 cents lower, soybeans 5-7cents lower, and wheat 2-4 cents lower.
Trackers:
Overnight grain, soybean markets=Trading lower.
Crude Oil=$0.28 per barrel higher.
Dollar=Lower.
Wall Street=Seen opening mixed, as the market awaits some major companies lto report earnings Thursday.
World=Asia/Pacific stocks are mostly lower, and Europe's stocks are mostly higher.
More in a minute,
Mike
