Chicago Grains Falter, But Beans End Higher

10/01/17 -- Soycomplex: Beans closed higher approaching Thursday's WASDE report from the USDA. Trade forecasts for Brazilian production are growing, but shrinking for Argentina. CONAB increased their view on Brazil by 1.33 MMT to 103.78 (USDA: 102). That figure is now up 8.3 MMT from last year. AgRural raises Brazil from 101.8 MMT to 103.1 MMT. Dr Cordonnier lowered Argentina 1 MMT to 55.0 MMT citing heavy rains. More heavy rain is in the forecast. The Malaysian Palm Oil Board reported December stockpiles of palm oil at 1.665 MMT versus 2.633 MMT last year. Jan 17 Soybeans settled at $10.05 1/2, up 9 cents; Mar 17 Soybeans settled at $10.13 3/4, up 8 1/2 cents; Jan 17 Soybean Meal settled at $313.40, up $3.60; Jan 17 Soybean Oil settled at 35.43, up 16 points.

Corn: Corn ended they day around a cent or two easier. The USDA reported 241,600 MT of US corn sold to unknown destinations, 91,300 MT for 2016/17 delivery, and 150,300 MT for 2017/18 delivery, under the daily reporting system. There was also 130,000 MT of old crop sold to Taiwan. CONAB raised its Brazil corn production forecast to 84.5 MMT (USDA: 86.5 MMT, last year 66.57 MMT.). Dr Cordonnier went for 86 MMT in his Brazilian estimate; Argentina was lowered 0.5 MMT to 34.5 MMT. The trade is looking for Thursday's US corn yield figure to come in anywhere between 173.4 to 176.1 bushels per acre versus the December USDA figure of 175.3 bu/acre. Mar 17 Corn settled at $3.58 1/4, down 1 3/4 cents; May 17 Corn settled at $3.65 1/4, down 1 3/4 cents.

Wheat: Wheat closed with little change. Japan are tendering for 162,777 MT of milling wheat from the US and Canada with the results expected Thursday. Low prices relative to other crops continue to put US wheat acres under pressure. The range of trade estimates for US winter wheat acreage in Thursday's report stretches from 31.7 to 36.38 million acres versus last year's 36.13 million acres. Record/near record yields are being reported out of Eastern Australia. China sold 375 TMT of the 2.67 MMT of wheat offered up for auction today. Severe cold weather in Ukraine could offer some threat to winter wheat already rated 17% weak/thinned. Mar 17 CBOT Wheat settled at $4.26 3/4, down 1/2 cent; Mar 17 KCBT Wheat settled at $4.38 1/4, down 1/4 cent; Mar 17 MGEX Wheat settled at $5.61 1/4, up 1 1/2 cents.