Grains drifted lower overnight ahead of fresh data from USDA at 11 am CDT. Meanwhile, crude oil moved higher while the US dollar was sharply lower in the night session.
USDA announced a 110,000 MT of of corn to Japan, and another 253,488 MT to unknown destinations.
Following yesterday’s announcement that China would impose high tariffs on US DDGs imports, a think tank there has said it expects purchasing of the feedstuffs to slow. Imports for 2016/17 were previously seen at 2 MMT, said the China National Grain and Oils Information Center. They expect that number to slide to below 1 MMT, but that will likely boost soymeal and soybean demand.
In wheat, the 2017 rally took a hit yesterday as prices slid for a third session on improved weather in the US Plains and Black Sea region. Wheat is being pressured by expectations that weekend storms would help recharge soil moisture in Oklahoma and Kansas, where dry conditions have stressed dormant hard red winter wheat crops. Also, a substantial snow layer has protected Ukrainian and Russian winter crops from severe frosts which came this weekend.
South Korea's Major Feedmill Group has rejected all offers and made no purchase in an international tender to buy up to 70,000 tonnes of corn from optional origins, sighting prices that were too high. The lowest offer in the tender was $189.95 a tonne c&f on a flat price basis.
The US Dollar hit a 5-week low as President-elect Donald Trump’s first press conference was ambiguous on the direction of new policy initiatives, disappointing the trade on the Trumponomic bullish bet that has been in play since the election.
Weekly Export Sales-
Actual Expected
Corn 603 500-800
Soybeans 349 500-800
Wheat 391 250-450
Oil rose on Wednesday, lifted by reports of Saudi supply cuts to Asia, but gains were capped by a lack of detail about the reductions and because of signs of rising supplies from other producers. EIA crude stocks data is out later this morning with traders looking for a 1.1 million barrel build from last week.
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