In overnight news, Syria bought 200,000 MT of Russian wheat while Egypt was tendering for wheat as well. The lowest price in the Egypt deal came from Argentina, which entered the world export stage after eliminating its wheat export tax two weeks ago. If Egypt buys the Argentinean wheat it would be the first time since Oct 2012. A South Korea feed manufacturer also bought 120,000 MT of US soybeans for 2016/17.
In South America, limited rainfall will occur in Brazil during the second half of this week through the middle of next week, with center parts of Brazil seeing increased crop stress. Southern Brazil continues to be too wet. The dry weather is expected to be followed by increased moisture in the first part of January. Argentina continues to see favorable growing conditions in the two week forecast.
Crude oil is showing some signs of a modest recovery from Friday’s 11-year low. The American Petroleum Institute estimates crude inventories in the U.S. likely fell by 3.6 million barrels last week. Still, at 490 million barrels, total crude inventory is at an eight-decade high, according to U.S. government data. Official figures will be released later on Wednesday.
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