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Grains saw some trend reversal in the overnight

The USDA Ag Outlook Forum provided a boost for soybean prices on Thursday.

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Grains saw some trend reversal overnight with corn and beans giving up some of their gains from the previous session while wheat recovered from its losses on Thursday. Corn was down 1 cent a bushel, soybeans off 2 cents a bushel and wheat was up 2 cents.

The USDA Ag Outlook Forum provided a boost for soybean prices on Thursday after they announced that soybean acres are projected to be 83.5 million acres in 2015, down from 83.7 million acres planted in 2014. This was a surprise to the market which expected acreage to increase year over year for soybeans. Currently Informa’s latest soybean acreage forecast for 2015 is 88.03 million acres. Although this is not a survey based outlook, the market still viewed this as positive news for soybean prices. The USDA forecasted corn at 89 million acres planted in 2015, down from 90.6 million acres planted last year and saw wheat seeding’s losing 1.3 million acres year over year.

On Thursday after the close, Egypt’s GASC bought 240,000 MT of wheat with 180,000 MT of that going to French suppliers and the remainder going to Romania. On Friday, Egypt's Supplies Minister Khaled Hanafi said Egypt’s strategic wheat reserves will last until the end of May.

At the USDA forum on Friday, analysts’ pegged new-crop 2015 supplies based on normal yields and reduced acres. For corn, USDA sees the 2015/16 crop at 13.6 BLN BU as compared to 14.2 BLN last year. The soybean crop is projected to be 3.80 BLN BU versus 3.96 in 2014/15. Finally for wheat, USDA looks for the 2015/16 crop to be 2.125 BLN BU as compared to 2.026 BLN in 2014/15.

WEEKLY EXPORT SALES

Expected Actual

Corn 650-900,000 1,075,400

Soybeans 375-550,000 621,500

Wheat 300-500,000 305,400

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