Grains Close Lower; We Continue to Watch South American Weather

Published on: 16:03PM Jan 29, 2009
Mar 09 Corn
381 ¾
-2 ¾
May 09 Corn
-2 ½
Mar 09 Beans
970 ½
May 09 Beans
977 ¾
-12 ¼
Mar 09 Wheat
-17 ¼
May 09 Wheat
Mar KC Wheat
Mar Min Wheat
657 ¾
-15 ½
Mar 09 Meal
Mar 09 Bean Oil
The Bottom Line
1) Recent rains have helped Argentine crop; market waiting to see if additional rains develop next week.
2) Conditions in Brazil continue to improve
3) Export sales were solid for corn and beans and disappointing for wheat. 
4) The census crush came in as expected.
5) The egg set placement was down over 7% from a year ago.
4) Domestic demand remains weak for corn, wheat and soy products.
All three grains closed lower on the day. The market’s volume continues to be light. This morning’s export sales were over a million tons for corn for the second week in a row. However, US corn sales are extremely far behind and two weeks of good sales is no reason to get bullish at these levels. China was on holiday this week; therefore it was no surprise that bean sales were off. The bean markets main focus continues to be the weather in Argentina. The past four days we have seen showers in the region but the system forecasted for Sunday and Monday appear to be what everyone is watching. The models continue to be in disagreement as to the totals and coverage of this system. It appears the market may wait until next week to see what kind of rains the system actually brings before it reacts. Even if the rains are disappointing we still have seen conditions improve in Argentina over the past week and there is another system forecasted for late next week. The Wheat market struggled throughout the session. The short covering rally yesterday made the wheat vulnerable to a sell off. In addition, this morning’s weak sales number added to selling pressure.
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