Grains continued to move lower with soybeans leading the complex on a 5-cent decline. In outside markets, crude oil also was on a downward trajectory.
In South America, the evening GFS model run had no major changes for week 1. In week 2, rainfall amounts were increased for a majority of southern and central Argentina Jan. 1-2. Amounts were also increased from northern Argentina north through Paraguay and west-central Brazil for Jan 3-5.
Chinese November customs data showed strong U.S. soybean purchases for November, up 32% versus last year. However, China has found two more cases of human bird flu infection, bringing this week's total to three and stoking fears the deadly virus could spread at a time when other Asian nations are battling to control outbreaks of the disease. Health officials in nearby South Korea and Japan have been scrambling to contain outbreaks of different strains of bird flu, with the poultry industry there bracing for heavy financial losses.
Weekly EIA report was close to expectations, finding only a small reduction in run times off last week’s record high levels. Production slipped less than one-half percent to a 1.036 mil bbl/day rate. Carried forward, such a rate would utilize 5.54 billion bushels of corn. Note, though, that the marketing year to date level is closer to 5.35 billion versus USDA at 5.3.
Weekly Export Sales-
Actual Expected
Corn 1,251 800-1,100
Soybeans 1,812 1,100-1,400
Wheat 297.8 300-500
EIA crude oil inventories yesterday showed a 2.25 million barrel build versus a 2.5 million barrel draw-down in stocks, which had been expected. Net imports grew by 1 million barrels to 7.9 million barrels in the period which fueled much f the inventory jump.
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