Chicago Grains Mostly Lower

02/11/16 -- Soycomplex: Beans closed lower on ideas that the USDA will raised its forecast for US 2016 production again in next week's WASDE report. FCStone set the tone yesterday by upping their forecast for 2016 yields from 52.5 bu/acre to 52.8 bu/acre, some 1.4 bu/acre above the USDA's October estimate. Talk that corn planting delays in Argentina caused by wet weather may lead to an enforced switch of acres back into beans was also a bit bearish. On the friendly side, Brazil's October soybean exports fell to 998,000 MT versus 1.44 MMT in September and much lower than 2.6 MMT in October 2015 as their supplies dry up. China bought 132,000 MT of US beans overnight, the USDA announced under the daily reporting system. Nov 16 Soybeans settled at $9.76 3/4, down 7 1/2 cents; Jan 17 Soybeans settled at $9.86 1/2, down 6 3/4 cents; Dec 16 Soybean Meal settled at $306.70, down $2.80; Dec 16 Soybean Oil settled at 34.98, up 13 points.

Corn: The market closed a couple of cents or so lower. Fresh news was hard to come by. Rains are delaying early corn planting in Argentina, which may lead to some of the expected 25-27% increase in area this year get switched back into beans, said Dr Cordonnier. Argentine growers are reluctant to plant corn in November as it leads to pollination in January, often the hottest and driest month of the year, he noted. Brazilian customs data shows that they only exported 1.1 MMT of corn in October (usually their busiest month of the year), down sharply from 2.91 MMT in September and well below the 5.55 MMT shipped out in October 2015. The US dollar was weaker ahead of the Nov 8th Presidential election. Russia said that their 21016 corn harvest was 60.8% complete at 9.8 MMT. The US Energy Dept reported ethanol production last week to 1.022 million barrels/day. FCStone estimated 2016 US corn yields at 175.3 bu/acre vs the USDA’s 173.4 bu/acre number from last month. Dec 16 Corn settled at $3.46 1/4, down 2 3/4 cents; Mar 17 Corn settled at $3.55 1/2, down 2 1/4 cents.

Wheat: The wheat market closed mixed, firmer in Chicago and Kansas but lower in Minneapolis. Talk of a better weather forecast for Canada had the latter market on the defensive. Japan are on the market for their regular weekly tender of 153,156 MT of US/Canadian and Australian wheat with the results expected Thursday. South Korea are tendering for 52,850 MT of US milling wheat for Mar/Apr shipment. Russia is still wrapping up the last remnants of it's 2016 harvest, now seen at 95.1% complete at 120 MMT in bunker weight. That includes a 75.8 MMT wheat harvest (98.2% complete) and one of 19.1 MMT for barley (97% complete). Russian winter planting works are now complete on 17.0 million ha, or 97.7% of the government target. This compares to only 15.8 million ha this time a year ago. The trade will soon start to focus on weather conditions and crop development in the Black Sea region ahead of winter dormancy. Dec 16 CBOT Wheat settled at $4.17 3/4, up 3 1/2 cents; Dec 16 KCBT Wheat settled at $4.15 1/2, up 1 3/4 cents; Dec 16 MGEX Wheat settled at $5.17 1/4, down 2 1/4 cents.