Grain Marketing Specialist
Export Inspections to be released this morning.
Corn Down 3 ½ as of 7:45
March corn ended the day Friday up 6 ½ to close at $3.72. Technically corn was able to post a new four week high at Fridays close. Fundamentally the market was supported by weekend weather forecasts for continued hot and dry conditions in parts of Argentina. Due to the crop damage caused by extremely dry and hot weather, South Africas corn crop could be cut to 6.86 million tons by their crop estimate committee. South African corn production was cut 4 million tons from 12 million to 8 million in Januarys WASDE report.
Beans Down 4 ¾ as of 7:45
March soybeans gained back almost all of what they lost in Thursdays trade on Friday. Posting a 14 ½ cent rally to close at $8.8225. Commercial buying tied to weekend forecasts of hot and dry conditions in parts of Argentina provided most of the support. Brazil harvest is said to be at 4% complete, while Mato Grosso is said to be at 7% both are behind last years pace at this time. China cancelled a massive 395,000 tons of soybeans for 15/16 delivery, this is believed to be the largest cancellation ever.
Wheat Minneapolis Down 3 ¼ Kansas City Down 4 ¼ as of 7:45
March Minneapolis Spring finished the day Friday up 4, while March Kansas City finished up 7 ¼ cents. Following the rallies in corn and beans to reach new session highs late in the day Friday. A French cargo of wheat was cancelled by Egypt after the cargo was found to be contaminated with ergot. Egypt has zero tolerance for ergot. Egypt will now import 2 cargos of Argentina wheat, the first to Egypt from Argentina in almost 3 years. Argentina also exported some wheat to South Korea, the first in nine years.
U.S. wheat values remain uncompetitive right now and Argentina continues to aggressively market wheat.