In the overnight session the grains traded lower with soybeans leading to the downside by 8 ¼ cents by the morning pause. Corn slipped 3 ½ cents and wheat slid 1 ½ cents on Tuesday morning. Soybeans are now trading below key support at $9.91 as higher than expected ending stocks coupled with lower than expected December soybean crush weigh on prices. This morning another cancellation from China including 174,000 metric tons of old crop soybeans will weigh on market prices in the early morning. This is the second cancellation in five days following last week’s cancellation of 285,000 metric tons. The USDA will release export inspections today at 10 AM CST due to the Martin Luther King holiday.
This morning China announced that its economy had grown at 7.4 percent in 2014 down from 7.7 percent growth in 2013. This year’s economic growth in China has been the slowest in nearly 27 years and increases the chances the government takes steps to stimulate growth to avoid a more serious decline.
In Brazil harvest has advanced to about 4.1% of the estimated 21.9 million acres only 1% behind the pace of last year’s harvest. Despite the dry spell that occurred in October these early planted crops are showing promising yields. The north eastern part of Brazil, which has been the driest this season looks to remain dry in the 6-10 day forecast. Despite the dry weather in the north, the southern growing regions have received above average precipitation this growing season which has helped offset the dry conditions in the north.