In the overnight session the grains are trading mixed with March corn down 1 cent, March soybeans down 5 ¾ cents and March Chicago wheat down ½ cent. Wheat prices have held their gains since December 13th as cold weather threatened the dormant winter wheat crop with below zero temperatures over the New Year’s holiday.
Precipitation over the new year has brought moisture to the north-western and west central parts of Argentina with rain totals measuring from 1 to 2 inches in Cordoba and .8 to 3.66 inches in Santiago Del Estero. On the other side of the country, Buenos Aires has received very little moisture over the last few weeks and recent hot temperatures have depleted soil moisture in the region. Although the recent rains helped the northern part of Argentina, the southern part of the country is now at risk of dryness impacting crop production. Precipitation throughout Buenos Aires will need to be monitored closely in the coming weeks.
The USDA is scheduled to release their Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks report today at 2 PM CST. Analysts are expecting for the report to show that 174.1 million bushels of soybeans were processed in November, down slightly from 175.9 million bushels processed in October. Analysts are expecting soy oil stocks to be around 1.737 billion pounds, up from 1.626 billion pounds in October.
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