Overnight Markets

eCBOT grains are mixed in quiet trade ahead of the USDA's stocks & world production numbers due at 13.30GMT.

Soybeans are around 5c higher, and wheat and corn 1-2c lower in light positioning ahead of the data.

South American production numbers are expected to be lowered for corn & soybeans.

For soybeans expect the Argy crop to be reduced from 49.5mmt to around 45mmt, in Brazil from 59mmt to 57-58mmt.

In corn we can also expect to see the Argy crop cut from 16.5mmt to 13-14mmt, and in Brazil from 53.5mmt to around 51-52mmt.

For US ending stocks it is expected that corn will be increased, soybeans decreased and wheat left roughly unchanged. For corn that means going from 1.79 billion bushels to around 1.9 billion; for beans from 225 million to 200 million; and for wheat staying around last month's 655 million.

In other news Iraq bought 350,000mt Canadian, Australian, German and Russian wheat yesterday, whilst Tunisia bought 50,000mt of any origin milling wheat.

Japan are in the market for their usual combo of US, Canadian and Australian wheat in a tender due to be concluded Thursday. Of this 86,000mt is expected to be US wheat.

Pakistan may retender this week for 250,000mt wheat ahead of their own harvest in March/April

Taiwan are on the prowl for 60,000mt US corn.

Nobody seems to know what is really going on in China, one minute they are having the worst drought for 100 years, the next minute there isn't a problem.