Corn and wheat prices found modest strength overnight while nearby soybeans were off slightly.
For corn, export demand continues to be limited. Overnight, Taiwan’s MFIG corn purchasing group rejected all offers and made no purchase in a tender to buy up to 60,000 MT of corn, citing too high prices. However, China likely bought 5 cargoes or more of corn for Sep and Oct shipment on Tuesday, a trader said. That followed the 2 cargoes USDA reported sold to unknown on Monday, which was believed to be China as well. On the weather front, some showers are expected throughout he Midwest over the next 10 days, but not enough to disrupt planting progress. In addition, warmer temperatures are expected which should help speed crop development.
In soybeans, cash basis levels continued to crash at key buyers yesterday. In many cases, basis levels are off 40 to 60 cents a bushel in the last week as strong sales and slowing export demand help build pipeline stocks for end users. In Argentina, striking port workers, who went on strike Monday, say they are set to talk with management today. The government is keen to see the strike end so that grains exports can resume from main shipping hub Rosario. On Tuesday, Oil World projected that tight stocks before the new-crop harvest will cause the US to import 32 MB of soybeans in Aug/Sep from Canada and South America.
For wheat, recent price drops have helped find some new buying interest, but overall global supplies seem to be abundant keeping prices on the defensive. Jordan has again issued an international tender to purchase 150,000 MT of milling wheat to be sourced from optional origins but disagreements about a new quality inspection scheme has reduced tender participation by grain export houses in recent tenders. Russia’s Grain Union has raised the top end of its 2013 harvest forecast range due to the good condition of winter grains, its head said on Tuesday, indicating that crop risks due to dry weather this month were limited.