At this moment everything is positive, Soybeans up 14, corn up 3 and wheat up 2. This is what the market is talking about. Have a good weekend. Enjoy the weather!
Headlines pulled from MidCo and AgriCVisor
The Chinese Vice Premier said yesterday afternoon that China would buy another 5 MMT’s of U.S. old crop soybeans. Most of these beans are expected to be shipped from the PNW, but some will likely be sourced from the Gulf. We’ll see if CIF values react to the news in the coming days. The next round of negotiations is scheduled for mid-February. China also hinted that it is interested in buying 8 MMT’s of U.S. corn and 5 MMT’s of wheat.
The February crop report is a week from today and we will get the quarterly stocks numbers and winter wheat seeding reports then also. News is bullish this morning as it looks more likely that China will be buying more than just soybeans. A higher trade looks likely to finish the week.
The forecast looks better for Brazil this morning. Rain is on the way for a dry northern Brazil over the next several days and shouldn't fall very heavily where it isn't wanted in the South. Drier weather in the North is allowing Brazil's soybean harvest to move forward at a quick clip, now more than 20 percent done. Argentina has a chance to dry out a little bit along with southern Brazil starting this weekend. Flooding in the country has prevented as much as one million acres to be planted. Abundant moisture outside of the big trouble spots is producing potential for a bumper corn crop.
The window is closing for the usually most-active period of October to February for U.S. soybean exports to China. Brazil's harvest is coming on line and replenishing supplies there. Brazilian soybean exports were already up 56 percent last month compared to the January before.