In the overnight session the grains traded mixed with March corn unchanged, January soybeans up 2 ¾ cents and March Chicago wheat unchanged. Kansas City wheat is up ½ a cent, but is currently trading at a price level where overhead resistance is likely.
Export sales for SRW wheat recorded 191,527 metric tons this week which was the largest weekly sale of that variety since July 2014. Foreign buyers are looking to US SRW wheat to use as feed as prices have fallen to $175 per metric ton FOB which is currently more competitive than Russian wheat with the same protein level. Chicago wheat prices have been sliding lower all fall printing a most recent low at $4.10 ½ cents per bushel on December 11th. The recent prices have enticed some buyers and animal feeders to lock in attractive protein levels.
The latest weather models shows that conditions in Brazil will be favorable for the corn and soybean crop over the next two weeks. However, areas such as Bahia, northeast Minas Gerais and Rio Grande do Sul are all drier than the rest of Brazil. Forecasts for precipitation next week should resolve some of that dryness next weekend. Argentina is forecast to have precipitation over the weekend with another precipitation event in the forecast for next Friday through Sunday.
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