Soybeans were lower on profit taking and technical selling, along with a lack of surprises in the supply and demand numbers. USDA lowered its estimate for the South American soybean crop following extremely hot and dry conditions during parts of the growing season. Brazil’s CONAB lowered its outlook for 2011/12 beans to 69.23 million tons, 3.5% less than the January guess, while lowering the export projection 600,000 tons to 31.8 million tons. U.S. ending stocks were left unchanged and while the world number was down, USDA also lowered the global export estimate. Soybean meal was mixed and bean oil was up.
Corn was lower on profit taking and fund selling. USDA lowered U.S. ending stocks on an increase in exports but also raised imports slightly. In any event, the domestic stocks number was larger than expected and Argentine crop damage appears to be factored in. Brazil’s CONAB lowered its 2011/12 summer corn crop estimate 35.04 million tons, 7.6% less than the previous estimate, but sees the winter crop at 60.83 million tons, which would be up 6% on the year. The Brazilian summer crop is currently being harvested and the winter crop is being harvested. The Buenos Aires Grain Exchange decreased its corn estimate to 21.3 million tons; USDA sees the crop at 22 million tons. Ethanol futures were mostly firm.
The wheat complex was lower on fund and technical selling. U.S. ending stocks were down on the month but the world number was raised to a new all-time high. Past that – there was no fresh news and at this time, the trade’s ignoring winterkill concerns in Europe. European wheat was lower on the neutral to bearish USDA numbers. Iraq bought 100,000 tons of Australian wheat while tendering for another 50,000 tons from all origins except Romania. Japan bought 98,552 tons of milling wheat (41,845 tons Canadian western red spring, 33,897 tons U.S. hard red winter, and 22,810 tons U.S. western white). Australia’s Emerald Group Ltd., via Dow Jones Newswires, reports December wheat exports were 2.06 million tons, up 17% from November and a 65% increase from December 2011. China’s Ministry of Agriculture states drier and colder than normal weather is posing a threat to their spring wheat crop.
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