Chicago Grains Fall Tuesday
23/08/16 -- Soycomplex: Soybeans closed with small losses, but nothing significant. Strong underlying support is seen at the sub-$10/bushel mark. Stats Canada estimated the 2016 Canadian canola crop at 17 MMT, around 1 MMT below trade estimations keeping oilseed supplies tight. Talk remains that Argentine growers will plant fewer beans as the government stall on it's promise to reduce export taxes. The Brazilian grower meanwhile is tempted by high domestic corn prices to also switch away from beans. That potentially leaves another year of a tightening world S&D situation as long as demand from China holds up. Sep 16 Soybeans settled at $10.34 1/4, down 1 cent; Nov 16 Soybeans settled at $10.13 1/2, down 2 1/4 cents; Sep 16 Soybean Meal settled at $332.40, down $1.80; Sep 16 Soybean Oil settled at 33.89, unchanged.
Corn: The corn market closed around 4-5 cents lower. Fresh news was lacking. The USDA surprised the market with a small increase in crop ratings last night. The ProFarmer crop tour reports much better crops in Indiana and eastern Illinois than had been seen on day one. Rains continue in Delta, delaying harvest activity. Stats Canada estimated an 8.9% drop in 2016 Canadian corn production from last year at 12.3 MMT. After all their problems with rain disrupting the wheat harvest, France is now experiencing a heatwave just as corn is pollinating, which may cut yields for that crop also. Temperatures in the coming week are expected to be between 2 and 6 degrees above average, say Reuters. Sep 16 Corn settled at $3.28 1/2, down 4 3/4 cents; Dec 16 Corn settled at $3.37 1/4, down 5 1/4 cents.
Wheat: The wheat market closed lower across the board, with Minneapolis reversing the recent trend and coming off the worst of the three exchanges. That spring wheat market was under pressure from the news that Stats Canada was estimating the Canadian wheat crop at 30.5 MMT, up more than 10% on last year and the second largest crop in the last 25 years. Egypt passed on their wheat tender with no reason given. 11 bids were on the table. Jordan made no purchase in their 100 TMT wheat tender, and immediately re-issued for the same. Russia's wheat harvest is 61% done at 58.1 MMT. Final production estimates of 72 MMT "look attainable" said Agritel. They could yet finish up even higher than that. Russia is expecting very good exports August and September. Ukraine is likewise. Sep 16 CBOT Wheat settled at $4.07 3/4, down 7 1/2 cents; Sep 16 KCBT Wheat settled at $4.07 1/4, down 6 1/2 cents; Sep 16 MGEX Wheat settled at $5.15 3/4, down 16 1/4 cents.
