Chicago: Beans Stage Mini Recovery

03/08/16 -- Soycomplex: Beans closed modestly higher on strong export interest and bottom-picking. The USDA reported 256,200 MT of soybeans sold for delivery to unknown destinations. Of the total 66,000 MT is for delivery during the 2015/16 marketing year and 190,200 MT is for delivery during the 2016/17 marketing year. In addition they reported sales of 441,000 MT of soybeans for delivery to China during the 2016/17 marketing year. It is interesting to see the US picking up this sort of business as it backs up the argument that South America hasn't got that much left to do. This would mark an unusually early switch in demand to North America and one that demands a record crop to satisfy it. Aug 16 Soybeans settled at $9.90 1/2, up 5 1/4 cents; Nov 16 Soybeans settled at $9.55 1/2, up 2 1/2 cents; Aug 16 Soybean Meal settled at $330.50, up $2.10; Aug 16 Soybean Oil settled at 30.30, up 24 points.

Corn: Corn closed with small net gains. Export sales of 290,000 MT of corn for delivery to unknown destinations during the 2016/17 marketing year were reported by the USDA under the daily marketing system. The Energy Dept shows US ethanol production up 6,000 barrels/day to 1,004,000 million barrels/day. Of significant interest is talk of the Brazilian government working on allowing US GMO corn to be imported into the country for feed use. This lends weight to the argument that supplies are tight and that they are a spent force on the export front until next year. Strong production is expected in Europe and the FSU this year. Weakness in their respective domestic currencies should make competing against US corn on the global market relatively easy. Sep 16 Corn settled at $3.25, up 3/4 cent; Dec 16 Corn settled at $3.35, up 1 cent.

Wheat: Wheat closed closed higher. Fresh news was limited. Concerns over European production keep getting voiced, but as yet we have no confirmation of the plight afflicting France having spread in a meaningful way to neighbouring countries. Japan bought 55,480 MT of US feed wheat and is in the market for milling wheat in it's usual weekly tender. Egypt said that they now have enough wheat bought to last them until mid-February. The Russian harvest is going well, with 40.5 MMT of wheat produced off only 37% of the planned harvestable area then it is easy to see why some are now calling for a crop in excess of 70 MMT to be produced this year. That excess will make up for most of the French shortfall on it's own. Sep 16 CBOT Wheat settled at $4.10 1/4, up 9 cents; Sep 16 KCBT Wheat settled at $4.12 1/4, up 5 3/4 cents; Dec 16 MGEX Wheat settled at $5.05 3/4, up 5 cents.