Corn, wheat slide on slow demand

Soybeans were higher on technical and commercial buying. The fundamentals remain strong with a tight supply and good demand. There was no real fresh news and South American weather problems are largely priced in but that can change pretty easily, depending on shifts in patterns. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. Brazil’s soybean industry group ABIOVE estimates 2013 soybean production at 82.3 million tons, compared to 81.6 million in their December report, and states the 2012 crop was 67.3 million tons with processing at 35 million tons.

Corn was lower on technical and fund selling. There was no real fresh news for corn either, especially from the export side of things. Overall, it looks like demand is slowing down as the trade gets ready for Friday’s supply and demand update. The report is out February 8 at Noon Eastern/11 AM Central. Dow Jones Newswires reports Midwest cash corn basis prices were down Tuesday, responding to the slowing demand. Ethanol futures were lower. According to Ukraine’s Ag Ministry, since the start of the marketing year July 1, corn sales are 7.8 million tons, including 1.25 million tons in January alone.

The wheat complex was lower on commercial and technical selling. There was also no fresh supportive news for wheat and the complex is keeping an eye on forecasts for snow in parts of the Plains later this week. Canada’s wheat stocks on December 31, 2012 were inside estimates at 20.690 million tons, compared to 20.831 million at the end of 2011, with durum near the high end of projections at 3.830 million tons, compared to 3.995 million the previous year. Japan’s tendering for U.S. milling wheat, but it’s a fairly small amount when compared to other origins: 53,178 tons Canadian western red spring, 28,165 tons Australian standard white, 22,751 tons U.S. dark northern spring, 16,910 tons U.S. western white, and 5,180 tons U.S. hard red winter. Ukraine’s Ag Ministry reports total grain exports of a little more than 16 million tons are 46% ahead of the year ago pace. Wheat sales are at 6 million tons, reportedly about as much as Kiev will allow to be sold. European wheat was lower on the lower U.S. trade and forecasts for snow in parts of the U.S. Plains.

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