Soybeans were modestly higher on speculative and technical buying with gains limited late by the higher dollar. There hasn’t been much of an improvement in South America’s weather and China reportedly has a trade delegation headed to the U.S. Past that – the trade’s getting ready for Thursday’s USDA supply and demand numbers, which will also have revised South American production figures. Soybean meal was weak and bean oil was firm on product spread adjustments. China’s Ministry of Customs estimates Beijing’s January soybean imports at 4.856 million tons, 10% less than December and down 5% from January 2011, and pegs February purchases at 3.712 million tons.

Corn was mixed in consolidation trade. There’s no fresh news, the outside markets were bearish, and commercial demand has slowed down. South America’s corn crop has been damaged but most of that seems to be factored in. Ethanol was firm. Brazilian crop consultancy Celeres, via Dow Jones Newswires, projects that nation’s summer corn crop at 35.45 million tons, down nearly 4% from its January estimate but still up more than 7% from the previous year thanks to increased acreage. Celeres adds 8% of the summer corn crop is harvested and the firm estimates winter corn production at 25.14 million tons.

The wheat complex was mostly higher with Chicago and Kansas City up short covering and commercial buying. There are the continued concerns about winterkill in Eastern Europe and Western Europe also had damaging cold over the weekend. Also, Ukraine is set to slow down exports by halting railroad exports of grain. European wheat made a new eight month high thanks to weather worries and the lower Euro.

Soybeans were higher on speculative and technical buying, along with the higher Dow and crude oil. The trade continues to watch weather in South America with scattered rainfall expected around the region during the coming week. The global supply remains tight ahead of February 9th’s USDA supply and demand update, where USDA will also have updated South American production estimates. Informa Economics most recent estimates have Argentina’s soybean crop at 46.5 million tons and Brazil at 70 million tons. Soybean meal and oil were higher, following soybeans’ lead. According to DTN and Reuters, Taiwan’s Breakfast Soybean Procurement Association bought 60,000 tons of soybeans from Brazil.

Corn was modestly higher on technical buying and spillover from beans. There was no fresh news with most of the South American crop damage probably factored in at this time. However, we do know that damage has been done – USDA’s agricultural attaché has lowered its’ production outlook for Argentina, from 26 million tons to 21.8 million tons, while Informa Economics pegs the Argentina crop at 22.5 million tons and sees Brazil’s corn crop at 61.65 million. The next official USDA estimate is out with the supply and demand numbers on Thursday, February 9. Ethanol futures were steady to weak. Dow Jones Newswires reports South Korean feedmills bought 174,500 tons of corn (Major Feedmill Group: 69,500 tons optional origin; the Busan branch of the Korea Feed Association: 55,000 tons U.S. corn; the Seoul branch of the KFA: 50,000 tons optional origin) with delivery scheduled for mid-May. DTN and Dow Jones add Taiwan’s Maize Industry Procurement Association bought 55,000 tons of Argentine origin corn for shipment in mid to late March.

The wheat complex was mixed. Chicago and Kansas City were down on profit taking and technical selling. Minneapolis was up on the comparatively good demand for high protein wheat. On Friday, Russia raised its export projection to 27 million tons and said it won’t add an export tax this April. Moscow says grain exports as of February 3 are 19.6 million tons and along with an increase in the production total, up to 93.9 million tons, the Ag Ministry also cited enough carryover and intervention stocks as reasons for the export increase. Dow Jones Newswires Eastern European growing areas should see a break from the recent extremely cold conditions. European wheat was up on the recent Eastern European weather concerns. India’s Farm Ministry expects domestic wheat production to be a new record high 88.31 million tons.