Chicago Grains Turn Lower

Corn: The corn market slumped on harvest pressure following last night's announcement from the USDA that US farmers had cut 19% of their 2014 corn crop in the past week. That's "one of the strongest levels of progress for any week in the past 20 years - equivalent to approaching 16m acres, an area 1.5 times as big as Switzerland," said Agrimoney. Informa estimated US corn yields this year at 174.4 bu/acre, with production at 14.493 billion bushels. FCStone were 178 bu/acre, with production at 14.783 billion bushels yesterday. The USDA were 174.2 bu/acre and 14.395 billion bushels last month. Indonesia bought 110,000 MT of Brazilian corn for Jan–Feb shipment in a tender. Israel cancelled a tender to buy 90,000 MT of optional origin corn for Jan-March shipment. The EU lowered import taxes for corn, sorghum, and rye to EUR4.49/tonne from EUR10.44/tonne. Informa estimated EU corn production this year at 72.5 MMT versus a previous estimate of 71.0 MMT. They have the Brazilian corn crop estimated at 69.7 MMT, down 900,000 MT from their previous estimate. Safras e Mercado said Brazilian corn planting is 54.4% complete versus 45.8% a week ago and 76.6% a year ago. Dec 14 Corn closed at $3.64 1/2, down 9 cents; Mar 15 Corn closed at $3.77 1/4, down 8 3/4 cents.
Wheat: The wheat market closed around 7-8 cents lower across the three exchanges. "US wheat futures reversed yesterday’s late strength early in the overnight market as the inability to test yesterday’s highs triggered selling," said Benson Quinn Commodities. Informa now have the EU-28 2014/15 wheat crop estimated at 154.7 MMT, up 724,000 MT from their previous estimate. They cut their forecast for the Australia wheat crop to 22.0 MMT, down 1.9 MMT from their previous estimate. They also estimated US all wheat production at 2.035 billion bushels, and winter wheat production at 1.378 billion bushels. "Dryness building across parts of the Former Soviet Union is increasing stress upon the winter wheat crop. At the same time, prolonged colder than normal temperatures are pushing the crop into dormancy," said MDA CropCast. Having bought one cargo of French wheat over the weekend, Egypt announced another tender for wheat for Dec 11-20 shipment, with the results expected tomorrow. French wheat is likely to be the most competitive once again. "Short term and daily momentum studies are turning lower in all three markets. At best, once supportive weekly studies have flattened,it wouldn’t take much selling to turn the weekly studies lower. It appears the downside move is gaining momentum," said Benson Quinn. Dec 14 CBOT Wheat closed at $5.30 1/2, down 7 3/4 cents; Dec 14 KCBT Wheat closed at $5.90 1/4, down 7 1/4 cents; Dec 14 MGEX Wheat closed at $5.69, down 8 cents.