US – March Corn finished up 5 at 700 1/4, 1 1/4 off the high and 7 up from the low. May Corn closed up 4 1/4 at 696 1/4. This was 7 1/2 up from the low and 3/4 off the high.
March corn traded slightly higher on the day but traded both sides of the unchanged. The sharply higher trade in the soybean market helped support but losses in the wheat market early in the day weighed on the grain markets.
Outside markets were negative throughout the day. Crude oil and metals markets fell sharply lower, the US Dollar was higher, and equity markets tumbled late in the session.
Some weather forecasts show dry conditions in Argentina over the next 5 days which added modest buying support on thoughts production could be slashed.
Some traders are also suggesting export demand may come back to the US market in the spring as South America keeps busy with a robust soybean export program.
Interior basis levels remain firm on slow farmer selling and as physical traders attempt to drum up cash grain movement in the country.
March Rice finished up 0.105 at 16.025, 0.025 off the high and 0.025 up from the low.
Soy Futures Closed Higher
March Soybeans finished up 8 3/4 at 1479, 13 off the high and 12 1/2 up from the low. November Soybeans closed up 12 1/4 at 1287. This was 16 up from the low and 4 1/4 off the high.
March Soymeal closed up 6.7 at 432.0. This was 7.3 up from the low and 2.8 off the high.
March Soybean Oil finished down 0.46 at 52.07, 0.72 off the high and 0.07 up from the low.
March soybeans traded higher on the day despite mostly negative market sentiment in the commodity complex. Energy and metal markets fell sharply lower and the US Dollar was higher.
Support in the soybean complex continues to come from logistical hiccups in Brazil and dry conditions in key growing regions of Argentina.
There continues to be rumblings that a port strike will occur at all the major ports in Brazil soon and the vessel bottleneck to load has already exceeded levels for this time last year.
A private satellite company cut their 2012/13 Argentina soybean harvest outlook to 49.6 million tonnes vs. 51.6 previously.
The USDA has production pegged at 53 million tonnes. The company also pegged Brazilian soybean production at 81 million tonnes vs. 80.3 previously.
The USDA has production pegged at 83.50 million tonnes. The production declines in Argentina and uptick in Brazil is consistent with most market estimates at this point in time.
Wheat Futures Closed Higher
March Wheat finished up 6 1/4 at 738 1/2, 2 1/4 off the high and 10 3/4 up from the low. May Wheat closed up 6 1/2 at 745 1/4. This was 11 1/4 up from the low and 2 off the high.
KC and Chicago wheat traded higher on the day but saw early pressure on the mid-week weather forecast that suggests areas of KS and NE will see the heaviest snowfall of the season by the end of this week.
Some maps show that Goodland, KS could receive up to 12 inches, Salina, KS 14 inches, and McCook, NE 13.50 inches.
While more precipitation is needed and this event is not a drought buster, it will help protect crops from plummeting temperatures and add a boost to soil moisture for the spring.
Export demand added a bit of buying support to the market as well. It was reported overnight that China bought close to 350,000 tonnes of US wheat in the last 10 days, 100,000 tonnes of Canadian wheat, and close to 400,000 tonnes of Australian wheat.
Egypt bought 1 cargo of US Chicago wheat for early April shipment which was somewhat disappointing as many traders were expecting more tonnage to be bought.
March Oats closed up 10 at 387 3/4. This was 9 3/4 up from the low and 5 1/4 off the high.