Grains continued to bleed lower overnight with front-month May beans trading to their lowest level in two weeks. In outside markets, crude oil gave up 50 cents a barrel while the US Dollar and equity futures trended higher.
Soybean imports for February were 5.5 MMT which is 23% below the January import total but still 28% above the same month last year. Both the hog margin in China and soybean crush margins have been moving lower over the past month.
The US Southern Plains continue to be dry with high wind conditions. The winter wheat crop is reportedly 3 weeks ahead of normal in terms of maturity with only modest chances of rain in the SE Plains over the next two weeks. However, ample global supplies should keep prices in check, while also giving the market a break was news that Japan would skip its regular weekly wheat tender.
Tomorrow’s USDA report is expected to show no major changes to US carryout figures. However, traders do expect USDA to ratchet up Brazil crop forecasts for soybeans to 105.9 (vs 104 in Feb) and corn to 87.8 (8.5 previously). Argentina crop estimates are expected to stay mostly the same from February.
U.S. private employers added 298,000 jobs in February, well above economists' expectations, a report by a payrolls processor showed on Wednesday. Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 190,000 jobs, with estimates ranging from 150,000 to 247,000. This pushed the dollar higher in early morning trade. Official government jobs data will come on Friday morning.
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