Soybeans gained ground overnight, but turned sharply down on export sales news this morning. Wheat and corn continue to grind lower. Crude oil continued its climb advancing into the $50 range for the first time since October, while the US dollar was off in early trade.
Palm oil was up overnight hitting a 4-year high, while China soybeans posted modest gains but continues to be the highest it's been in a year. China is reported to be doing most of its buying out of Brazil and only doing modest shopping with the US.
The forecast for the next week in South America will feature drier conditions in most crop areas as a strong high pressure system drives the weather pattern for at least five days. This high pressure system will bring a brief pulse of moderately warm temperatures through Argentina and Brazil, but the strongest influence will be the suppressed rainfall as Argentina, Southern Brazil, and the eastern half of Center-West Brazil receive 0.4-1.2 inches below normal precipitation through the next 10 days.
Japan's Ministry of Agriculture bought a total of 158,514 tonnes of food quality wheat from the United States and Canada in a regular tender that will close late on Thursday. The global wheat market may came under pressure as Argentina and Australia's wheat crop seems robust as harvest hits there. Argentina farmers are said to be eager sellers at harvest with big yields and no export taxes as in the past.
WEEKLY EXPORT SALES
Actual Expected
Corn 761.6 900-1,200
Soybeans 1,399 1,000-1,400
Wheat 483.5 300-500
OPEC reached a deal to cut 1.2 million barrels per day in production. The cut of 1.2 was at the upper end of expectations (0.7-1.2 million bpd). An additional cut of 0.6 million bpd from non-OPEC countries could significantly add to what has been announced by OPEC.
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