Grains Start Week in the Red
Mar 25, 2013
Grain markets were lower overnight as traders look for increased supplies in the coming USDA report on Thursday. Overnight, nearby May soybeans were off 6 cents a bushel, while wheat and corn were off 1-cent a bushel.
On Friday, Informa projected US corn acreage at 97.753 million, which would be the highest level in 77 years and up from 97.2 million last year. Friday also brought news of poor feeder cattle numbers as USDA’s Cattle on Feed report showed February’s cattle placements were off 13.5% compared to last February and the lowest on record since the series began in 1996. Export business continues to be non-existent for the US as overnight a private buyer in the United Arab Emirates purchased 40,000 MT of corn likely to be sourced from South America.
In wheat there was notable global business overnight but yet again US exporters fell short. Australia was the lowest bidder for an Iraqi wheat tender of a minimum 50,000 MT, while India came in as the lowest bidder on a Bangladesh tender for 50,000 MT. Snow and rain continue to pass through large areas of the Plains and Midwest helping to improve soil moisture conditions there. The Southern Plains received about a 0.50 inch of moisture over the weekend with more expected later in the week.
For soybeans, China continues to be absent from the US bean market which has put bean prices on the defensive. Informa forecasted US soybean plantings at a record 78.457 million acres, versus last year’s final plantings of 77.2 million.