Grain and oilseeds closed lower.
The USDA will apparently be waiting until the 8 February World Agricultural Supply and Demand Estimates (WASDE) report to release its winter-wheat seedings and crop-production reports which were due out with the January WASDE. Timing of the release of other USDA reports, including export sales, are still being determined. Despite claims by US Wheat Associates last week, we did not see a Chinese boat loading in the inspections data released today, which showed around 360,000t of wheat in total. This is below ideas of closer to 500,00t, and below levels needed to meet USDA export estimates from December, though we could still see that in next week’s data if vessels completes loading in time.
Cold weather has started to hit the Midwest, with dry windy conditions blowing snow around in parts of Kansas. Most of the extreme cold is still set for the central Midwest, where heavy snow has been falling.
Corn and bean loadings of around 900,000t each were below expectations for 1 million tonnes and over. Soybean markets continue to watch the same news: China-US trade talks, US export sales data due later this week which will help to confirm how much bean demand has materialised, and ongoing South American weather problems. There is some rain on the forecast for Brazil, but not in the main bean areas, and too late for most fields. Argentina also has a few showers forecast, but nothing like the prior rains.
Foot and mouth disease has reportedly been detected in South Korea, but the extent of its spread so far, and whether it will impact feed demand, is not yet known.
Source: Lachstock Consulting