Overnight News

Ministry of Agriculture of Kazakhstan have confounded the market by increasing their 2010/11 MY grain export estimate from 6MMT to 8 MMT.

Funds were active in Chicago last night buying an estimated 10,000 contracts of corn, and 5,000 wheat. They are also thought to have sold around 5,000 of beans.

The Pro Farmer Midwest Crop Tour was in Illinois yesterday pegging corn yields in the state at 166.53 bushels per acre. That's fractionally down on last season.

Despite fairly widespread instances of Sudden Death Syndrome in soybeans, pod counts in Illinois were estimated at 1,308.31 in a 3 foot by 3 foot square, an 18 percent increase from last year's tour estimate.

Wheat is up on the overnight market, apparently drawing support from news that Egypt, unperturbed by these high prices, is tendering again for 55,000 MT of US, French, Canadian, Australian or German wheat for last-half September shipment. That's their second tender this week.

The Canadian Wheat Board estimate output there this year at 21 MMT, better thsn some early season ideas of a crop sub-20 MMT. Rain it would seem does indeed make grain. Statistics Canada are out tomorrow with their estimate.

In Russia 54% of the planted grain area has been cut producing 40.1 MMT, including 28.5 MMT of wheat. Abandonment is expected be high this year.

We now appear to be trading the Russian weather forecast as far as the wheat market is concerned as the trade now starts to focus on winter planting prospects:

Click map to enlarge