Grains posted modest gains overnight with soybeans trying to recover from a 10-week slide during which it has lost $1.40 a bushel. In outside markets, equity futures were sliding into the open while the US dollar and crude oil had modest gains.
Winter wheat crop conditions generally improved over the last week thanks to showers passing through the Plains. On Monday, USDA reported the Kansas wheat crop at 43% good-to-excellent vs 38% last week, Oklahoma at 41% vs 37% and TX improved from 34% last week to 39% this week. On average across all states, crop conditions are running off of last year’s reading with 51% of the winter wheat crop rated good-to-excellent vs 59% last year.
USDA’s census soy crush estimate released after the close yesterday showed February’s monthly total of 150.98 MB, slightly below analyst estimates which had pegged the figure at 151.9 MB. Brazil soy exports in March were a record high of 9.7 MMT.
In overnight news, South Korea feed group NOFI bought 65,000 MT of feed wheat, thought to be sourced from the Black Sea region. Japan is tendering for 120,000 MT of food wheat in their normal 3-times a month deal between the US, Canada and Australia. Algeria also was tendering for 50,000 MT of wheat, but often buys considerably more in its tenders than the nominal volume sought.
Argentina continues to be wet which is hampering soy harvest. A Big system is expected to bring widespread rains this weekend. Area of heavy rain will lead to some flooding potential.
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