In the overnight session the grains traded lower with corn down ½ a cent, soybeans down 1 ½ a cent, Chicago wheat up 2 cents and Kansas City wheat up 1 ¼ cents. Corn rallied 4 cents higher yesterday after it was unable to push to new lows after the relatively bearish WASDE report last Friday. With sentiment being relatively bearish the fact that corn was unable to push to new lows triggered short covering in yesterday's session. March corn prices are now firmly up against the 50 day moving average which has acted as resistance in October, November, December and most recently January 3rd.
Strategie grains lowered their forecast for European Union soft wheat exports to 21.6 million metric tons, down 750,000 metric tons from last months forecast. This revision primarily affects France and Romania exports which were each revised about 300,000 metric tons lower. The revision comes after the massive Russian wheat harvest continues to dominate the global export trade.
The International Grains Council raised its 2017/18 global corn forecast by 14 million metric tons to 1.054 billion metric tons. The revision was a result of increased European Union, China and Nigeria production estimates. The organization also revised its 2017/18 wheat production higher by 8 million metric tons to 757 MMT.
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