Overnight Markets

Corn & wheat are a bit lower still, after posting limit losses last night, whilst soybeans have stabilised somewhat, turning modestly higher.

Latest eCBOT prices this morning see beans around posting double digit gains, with wheat and corn 6-8c lower.

Yesterday's USDA data was very bearish for corn, and that has led to follow through selling this morning. Sharply lower demand from the ethanol sector is finally showing up in the USDA data.

The trade is still, rightfully, concerned about crop losses in South America, particularly Argentina, where the forecast remains mostly dry with just a few light showers with temperatures 86-94F.

For now, the trade seems to be ignoring the fact that the wheat data was really very bullish for new-crop, with all positions closing 56-60c lower last night. A 4 million acre reduction in plantings, double what was expected, doesn't warrant that in any shape or form.

Egypt plans to buy at least 55,000mt of wheat in a tender today, Japan is seeking 157,000mt of milling wheat in a tender on Jan. 15, of which 90,000mt is U.S. wheat. Pakistan is looking for bids to import 150,000mt by Jan. 31.

South Korea is seeking to buy 55,000mt of corn taking 110,000t of U.S. or South American origin yesterday.

Australian ASX March milling wheat is A$12 lower at A$278, mirroring last night's Chicago fall. The harvest in the east is now complete, with maybe 15% or so remaining to be cut in Western Australia.