Grains close mostly higher:
May Corn + 6 1/4 cents/bu (6.32 3/4)
May Soybeans + 2 1/4 cents/bu (14.91 1/2)
May Chi Wheat – 3 3/4 cents/bu (6.99)
Cdn $ +0.00135 (72.990 cents)
WTI Crude Oil +0.61/barrel (68.22)
Markets were mixed today with corn leading the pack on FINALLY gaining some strength in the export market. Soybeans and wheat failed to find a story to push them into strong positive or negative territory.
This afternoon (after the close), the Buenos Aires Grains Exchange cut the output of soybeans in Argentina to 25 million tonnes from 29 million previously, and corn to 36 million from 37.5 million. Late last year, they originally predicted the soy crop at 48 mmt and corn at 50 mmt. Right now, the USDA has Argentina soybeans at 33 million tonnes, and corn at 40 million, much higher than BAGE.
This morning we saw a fairly bullish export sales report released (even with the flash sales from this week not included in the totals). This morning, the USDA also confirmed another Flash Export Corn Sale to China for the 2022/23 marketing year for 641,000 tonnes. This brings their 3-day buying spree in corn to a total of 1.92 million tonnes or 75.6 million bushels. China is buying the dip!! Corn has strengthened on this demand, bringing them up 30 cents from their 7-month lows earlier this month.
The USDA released its Weekly Sales Report this morning, with sales for the week ending Thursday, March 9th coming in at the high end of trade expectations. Actual data is listed below (in thousands of tonnes):
The drought monitor was updated today and showed that grain production areas experiencing drought as follows… (+/- weekly change)
Corn: 31% (-2%)
Soybeans: 23% (-1%)
Spring Wheat: 49% (-6%)
Winter Wheat: 53% (-2%)
NOAA’s 90-Day forecast released today forecasts below normal precipitation for the N Plains, while looking at warmer temps in the S Plains. Precipitation looks to favor the Eastern Corn belt.
Funds are thought to have been mostly buyers today with corn and beans a buyer and wheat a seller.