Chicago Corn And Wheat Lower, But Beans Rise
26/01/15 -- Soycomplex: Beans closed higher on talk of developing dryness issues in central Brazil. "Drought has been ongoing for at least a month in the Brazil tropics. Rainfall this month to date has been severely deficient, 100-200 mm below average in Mato Grosso's primary soybean areas. It requires very heavy rainfall indeed to successfully grow soybeans in the tropics, due to the incessant heat and high evaporation," said Martell Crop Projections. The forecast for the week ahead is hot and dry in Mato Grosso, which is Brazil's leading soybean producing state, although southern states have a more favourable outlook. Weekly export inspections of over 1.5 MMT were strong once more, taking the marketing year to date total to 74% of the USDA's target for the season versus 57% typically for this time. Mar 15 Soybeans closed at $9.83 1/2, up 10 3/4 cents; May 15 Soybeans closed at $9.90 1/4, up 10 3/4 cents; Mar 15 Soybean Meal closed at $338.90, up $7.40; Mar 15 Soybean Oil closed at 31.08, down 52 points.
Corn: The corn market closed around 2-3 cents easier. Increased tensions between Russia and the West didn't seem to grab a lot of attention. Neither did the weekend Greek election results. Despite the fighting in the east of the country, Ukraine seaports shipped 529.9 TMT of grains in the past week, and 86% of that total was corn according to APK Inform. Russia has shipped 22 MMT of grains so far this season, but only 1.2 MMT of that total is corn, according to their Ag Ministry. Weekly US export inspections of 886,825 MT were towards the top end of trade estimates. Sorghum shipments also remain very strong, and are now more than 200% up on a year ago as China continues to be a featured heavy buyer of US origin material in preference to corn. Margins in the US ethanol sector are said to be in decline, faced by falling DDGS and ethanol prices. Fund selling in corn today was estimated at a net 3,000 contracts. Mar 15 Corn closed at $3.84, down 2 3/4 cents; May 15 Corn closed at $3.92 1/2, down 2 3/4 cents.
Wheat: It doesn't seem to take much for the US wheat market to close lower these days, and so it proved again today. Dollar strength is a continuous hindrance to US export hopes. Weekly export sales of only 263,035 MT were a disappointment, not for the first time this season. The Canadian Farm Ministry estimated wheat production there this year at 30 MMT, up 2.5% on last year. They see plantings rising 4% to 10.11 million hectares. Despite the rise in output 2015/16 ending stocks will fall 22.6% to 4.8 MMT, which is said to be the second lowest total in the past 25 years. Ukraine seaports only exported 74.2 TMT of wheat in the past week, according to APK Inform, as they now major on corn. The Ukraine Grain Association contradicted the Food Minister and said that exporters and the Ag Ministry are working on the fine print of their "Memorandum of Understanding" on wheat exports, and expect that to be made public soon. MARS said that winter wheat across large parts of Europe is far from fully hardened. Mar 15 CBOT Wheat closed at $5.20 1/2, down 9 1/2 cents; Mar 15 KCBT Wheat closed at $5.54 1/2, down 9 1/2 cents; Mar 15 MGEX Wheat closed at $5.69, down 7 cents.
