Grains were up in the overnight session with March corn up 1 ¼ of a cent and March soybeans up 1 cent. KC March wheat gapping higher for a second straight session, early trade wires putting the spotlight on yesterday’s USDA state crop ratings.
Chicago wheat rose for a fifth session on Tuesday to touch a four-month high on concern that dry conditions in parts of the US Plains are damaging crops. Condition ratings of US winter wheat declined in January in several southern US Plains states hit by drought including top US producer Kansas, the US Department of Agriculture said on Monday.
Exporters sell 132,000 metric tons of corn for delivery to Spain during the 2017/2018 marketing year. -USDA
The USDA rated 14 percent of the Kansas winter wheat crop in good to excellent condition, sharply down from 37 percent at the end of December. There is close market attention on the state of US winter wheat, with concern about dryness and cool temperatures in parts of the US Plains in the past few weeks. The market seems to expect the dryness in the US Plains to cause further deterioration of winter wheat crop ratings and this is reflected in firm prices today; however the actual impact will not be visible for some time yet.
US Export Inspections numbers; 1,104 for soybeans, 579 for wheat and 993 for corn. Wheat came in above estimations of 250-450; corn was in line with expectations as were soybeans.
The dollar reversed earlier gains on Tuesday and turned lower as US Treasury yields pulled back from their recent move higher while the euro strengthened after economic data confirmed the euro zone economy is growing at a healthy clip. The greenback is set for its biggest monthly decline since July 2017 against the euro as the combination of strong global growth and slow inflation encouraged investors to add bearish bets.
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