Soybeans continued to move lower in the overnight session giving up 10 cents a bushel. Wheat and corn were mostly quiet in the night trade with fractional changes.
Front month May beans have tumbled 60 cents in the past 4 trading sessions as reports circulate of South American beans heading to the US. A pair of Brazilian soybean vessels initially sold to China by Marubeni are now US-bound. One is headed for Wilmington, NC, and the other to Mobile, AL. In production news, the Rosario Grains Exchange estimated Argentina’s 2013/14 soybean crop at 54.9 MMT versus a previous estimate of 54.7 MMT. USDA has Argentina’s crop at 54.0 MMT in its latest April WASDE report.
In corn, weather models are beginning to hint at more rain in the Midwest in the coming week which could slow the pace of planting. Rain is expected to be about 1 inch over much of Iowa, Wisconsin and Minnesota in the coming 48 hours, with more rain expected early next week. On Tuesday, private exporters reported the sale of 240,000 MT of U.S. corn to Mexico for delivery in the 2014/15 marketing year.
For wheat, Oklahoma State Agronomist Jeff Edwards found damage from last week’s freeze in field trial plots, although damage was quite variable ranging from 5% to 80% depending on the location. Edwards goes onto to state “The drought has severely limited resilience in our crop and we are entering late April, so I do not anticipate there will be much of a recovery or rebound in fields that were severely damaged. It is important to note that 50% injury does not necessarily mean 50% yield loss. In most cases the actual yield loss will be less than the % injury. So, it is reasonable to expect that 50% injury might only result in a 35 or 40% yield loss.” In overnight deals, Japan’s Ministry of Agriculture bought a total of 108,789 MT of food quality wheat from the United States, Canada and Australia in a regular tender. In Australia, timely rains will boost wheat plantings by farmers when the seeding window opens later this week, analysts said, but the threat of an El Nino dry weather system may see production fail to capitalize on the good start to the season.