January 4, 2016
Grain Marketing Specialist
Corn: Down 1
India is expected to allow its major import of corn in at least 25 years as the drought cuts into domestic supplies. The government is forecast to allow .5 mmt in duty free corn to enter the country. Typically, the country net exports 2-5 mmt. March 2016 corn futures closed at $3.58 ¾ on Thursday, the lowest settlement price for the life of the contract. March corn is testing the contract low of $3.57.
Soybeans: Down 5
Parts of Brazil received scattered rains over the weekend, but heavier amounts are forecast this week for Northern Brazil, including the drier areas of Mato Grosso. World economy weighing on grains, Shanghai Composite down 7%. The 6/10-day forecast has temperatures well below normal for the Midwest (map below).
Wheat: MW down 2, KC down 5
Wheat exports from Argentina appear to have increased quite dramatically based on vessel line-up data. Harvest should be wrapping up in most areas. The U.S. HRW crop seems to have plenty of moisture to work with at the moment. MWH sees new contract lows overnight at $4.90.