Grains started Sunday night in positive territory but reversed lower overnight. Crude oil got a shot from expected further cuts in oil, while equity futures were mixed and the US dollar was lower.
USDA announced the sale of 256,000 MT of soybeans to China and 100,000 MT of milo to China.
Argentina did not see much rain over the weekend but C Brazil rains improved moisture in drier corn/soy areas. The 6 to 10 forecast shows big rain potential. In the near-term temps are rising and about a third of grain growing areas are dry.
Friday’s crop report was neutral to negative, but on the world front global supplies and stockpiles continued to balloon with big jumps in wheat and corn carryouts. USDA still has a big estimate for US corn feed use, with USDA expecting a 10% increase in corn for feed, but across the board US livestock production shows only modest 2 to 4% growth in production figures in 2017.
Saudi Arabia's main state grain importer, the Saudi Grains Organization (SAGO), said on Monday it has bought 725,000 tonnes of hard wheat.
A tender closed on Friday for 715,000 tonnes of wheat. Accepted origins were from the European Union, North and South America and Australia, at the seller's option. India is expected to bolster wheat imports after eliminating their import duty on Friday. Expectations are for an extra 2 MMT of imports from India, but in the big wheat picture that will have no lasting impact. USDA on Friday raised global wheat stocks by nearly 3 MMT to 252 MMT.
Oil rose by as much as 6.5 percent on Monday to an 18-month high after OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output to try to tackle global oversupply and boost prices. On Saturday, producers from outside OPEC, led by Russia, agreed to reduce output by 558,000 bpd, short of the target of 600,000 bpd but still the largest contribution by non-OPEC ever.
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