Grains were higher in the night session with soybeans continuing to take on new highs for this 6-week rally. In outside markets, crude oil continued to show positive gains getting closer to $41 a barrel, with equity futures also moving higher as well.
Grain markets will look towards today’s USDA supply and demand report. Most analysts expect incremental changes in ending stocks with old-crop wheat and corn stocks are expected to move higher on weaker exports while soybeans are expected to move lower.
On Monday, USDA reported a drop in the US winter wheat condition to 56% versus 59% last week. Corn plantings were pegged at 4% for the first report of the year. This is on par with the 5-year average but faster than last year when 1% of the crop was planted.
In international news, Egypt’s GASC tendered for wheat with the lowest offers coming from Ukraine, France & Romania. Japan's Ministry of Agriculture is seeking to buy 127,620 MT of food quality wheat from the United States, Canada and Australia in a regular tender that will close late on Thursday.
Crude oil continues to trade above $40 a barrel for the first time since March. Weakness in the US dollar is helping support crude oil prices as is the recent drawdown in crude inventories. A meeting of major oil producers in Doha on April 17 to discuss a freeze in oil output also is being followed closely since it could stabilize prices.
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