Chicago Grains End Lower, With Wheat Back Below USD5/Bushel

02/02/15 -- Soycomplex: Beans closed slightly lower, despite another strong week of export inspections, which came in at close to 1.7 MMT. That was 10% up on a week ago and 42% above this week last year. Cumulative year to date exports are now 19% up on a year ago. The Brazilian weather outlook is improving. "Mato Grosso soybeans received heavy rainfall last week 50-100 millimeters in the key center-west area. This was the heaviest weekly rainfall in more than a month. The forecast this week calls for near average rainfall in Mato Grosso and throughout the tropics, the areas that were intensely dry in January. The large ridge of high pressure that prevailed last month has broken down, encouraging more normal rainfall in early February," said Martell Crop Projections. "February rainfall, if it continues generous, would stabilize soybeans in Mato Grosso and the tropics at large. However, significant damage has already been done, as intensifying drought in January coincided with the key pod filling stage," they added. Mar 15 Soybeans closed at $9.59 1/2, down 1 1/2 cents; May 15 Soybeans closed at $9.66 1/4, down 1 1/2 cents; Mar 15 Soybean Meal closed at $327.90, down $2.00; Mar 15 Soybean Oil closed at 30.41, up 41 points.

Corn: The corn market closed with fractional losses. The USDA reported the sale of 132,600 MT of US corn to Mexico, split 121,550 MT for delivery during the 2014/15 marketing year and 11,050 MT for delivery during the 2015/16 marketing year. Weekly export inspections came in at 661,675 MT, which was a bit below expectations and last week's total of 887,000 MT. Crude oil bounced from lower overnight trade to close higher, and is now up more than $5/barrel, an 11.3% rise, in the last two trading sessions. Reports of a US refinery strike, and news that more than 90 US oil rigs were idled last week - the largest weekly fall in more than 30 years - was supportive. That saw the crude oil market rebound from oversold territory. Brazil formally approved plans to raise the ethanol blend in gasoline to 27% from the current 25%. Russia said that it had shipped out 1.2 MMT of corn so far this season (to Jan 21). Ukraine seaports exported 198.2 TMT of corn last week, which was 71% of all grain exports, down from 455.7 MMT and 86% the previous week. Heavy snow across much of the Midwest is seen hampering the movement of corn, and thus supporting the cash market. Mar 15 Corn closed at $3.69 3/4, down 1/4 cent; May 15 Corn closed at $3.77 3/4, down 3/4 cent.

Wheat: The wheat market closed lower across the three exchanges. Wheat in Chicago closed below $5/bushel for the first time in nearly 4 months. Canada reported that they had exported 7.95 MMT of wheat (excluding durum) so far this season, a 6% rise on a year ago. Canadian durum exports are up 21% at 2.66 MMT. Saudi Arabia bought 690,000 MT of optional EU, North American, South American, Australian 12.5% milling wheat over the weekend. Tunisia bought 117,000 MT of optional origin milling wheat and 50,000 MT of feed barley, and Ethiopia purchased 70,000 MT of milling wheat. Weekly US export inspections were 394,000 MT, which was higher than last week and also above the total reported during the same week last year, despite the firm US dollar. Competition for US wheat on the export front remains fierce though. Russia's new wheat export duty is now in force, and their shipments should now drop off significantly. They'd already started to do this in January, although the strong pace of early season exports still means that they've shipped out 17.3 MMT of wheat so far this season. US winter wheat conditions have an improved weather outlook, with rain on the Southern Plains and heavy snow in the Midwest. Egypt are back in the market tendering for wheat for Mar 1-10 shipment. Mar 15 CBOT Wheat closed at $4.92 3/4, down 10 cents; Mar 15 KCBT Wheat closed at $5.34 1/2, down 5 3/4 cents; Mar 15 MGEX Wheat closed at $5.54, down 2 3/4 cents.