Grains Find Positive Territory
Mar 19, 2013
Grain futures managed positive gains in the overnight session after suffering steep losses across much of the complex on Monday. Soybeans and corn were up 4 cents while wheat posted a 2-cent gain.
Nearby May corn futures reached its highest level since February 6th trading up to $7.24 in the overnight session. News from Taiwan that they were seeking a 23,000MT cargo of corn from the US helped provide small boost. However, exports in general continue to underperform with Monday’s USDA export inspections putting the year-to-date pace still below USDA’s annual projection by 24 MB.
For beans, China announced they were canceling 2 MMT of Brazilian soybeans due to shipment delays. The cargos were to be shipped in January and February, and traders in China now expect to substantially increase shipments into April through June, although it remains to be seen where those beans will be sourced from. Brazil’s port congestion is reported to have waiting time for ships to load beans stretching to around 40 days. Even so, news of late on US exports has been dismal, and US Gulf basis levels have backed off sharply falling 20-cents a bushel in the past week on sluggish demand.
In wheat, crop conditions improved again this week in Oklahoma and Kansas but slipped in Texas and Colorado’s first report of the season showed only 12% of the winter wheat crop in good-to-excellent condition. In international markets, India announced a 65,000 MT tender to export wheat in its ongoing effort to cut its huge stockpiles, while Bangladesh was seeking a 50,000 MT shipment of wheat.