With tensions eased just a bit concerning the situation in Ukraine, the corn and wheat markets had little new to prop up the bull and hence slipped backwards while a slight pickup in domestic meal demand and short-term oversold conditions were enough to give the bean market a little boost.
The February crush actually came in a little better than expected at 141.6 million bushels. This compares with 156.9 million bushels in January and reflects a pretty typical seasonal decline.
Export inspections fell within the range of estimates. For corn we shipped 38.5 million bushels, beans 34.5 million and wheat, 17.1 million. This means that to reach the current USDA targets we will need to average 35 million each week for corn, 4.2 million for beans and 20.1 million for wheat.
Part of the pressure in the corn market today stemmed from a report that the Ag Development Bank of China is recommending that corn be sold from government reserves.
We did release our acreage estimate today for the upcoming reports, which is based on our customer survey. They are as follows;
Corn Acreage 92.53 million (-2.84 million)
Bean Acreage 79.37 million (+3 million)
Wheat Acreage 56.16 million (unchanged)
I would expect to see choppy defensive action between now and the end of the month baring any more Black Swan events.
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