Chicago Grains Closing Comments - Friday

Corn: The corn market closed lower on the day and for the week. The USDA's FAS in Ukraine predicts 2016 corn production there at 26.98 MMT versus the USDA's 26.0 MMT estimate. They see 2016/17 Ukraine corn exports at 17.8 MMT (USDA: 17.0 MMT). French corn conditions are stable as the crop enters pollination. The Argentine corn harvest is estimated to be 47.5% complete by the Buenos Aires Grain Exchange, slowed by rain. IMEA has corn production in Brazil's Mato Grosso down 22.8% at 22.2 MMT. This could still be optimistic with production in reality down to 17-18 MMT, says Dr Cordonnier. IMEA have 2015/16 Mato Grosso corn ending stocks at just 70,000 MT, just 7-days worth of supply! Sep 16 Corn settled at $3.52 1/4, down 5 1/2 cents; Dec 16 Corn settled at $3.58 1/4, down 6 1/2 cents. For the week Sep 16 was down 2 3/4 cents.
Wheat: The wheat market closed lower despite French wheat conditions slumping another 10% G/VG this week for a 22% decline across the last three weeks alone. The Buenos Aires Grain Exchange predicted the Argentine planted wheat area at 4.4 million ha, down 100,000 ha from their previous estimate. The USDA's FAS in Ukraine estimate the 2016 wheat crop there at 24.5 MMT (USDA: 25.0 MMT) and sees exports in 2016/17 at 13.0 MMT (USDA: 12.5 MMT). Egypt released their second wheat tender of the week having purchased Ukraine/Russian material earlier in the week. The results of this tender are expected over the weekend. Algeria bought 400,000 MT of what was said the be German, Polish and Baltic wheat - note no French - in their latest tender. Sep 16 CBOT Wheat settled at $4.24 3/4, down 9 1/4 cents; Sep 16 KCBT Wheat settled at $4.13 3/4, down 4 cents; Dec 16 MGEX Wheat settled at $5.12, down 3 cents. Sep 16 CBOT wheat was down 10 1/4 cents on the week.