• In the wake of yesterday’s USDA report there is not a huge amount of fresh news and markets feel somewhat lacklustre as a consequence.

• A number of crop estimates have emanated from various countries including the following:

Australia’s ABARES – 2013/14 wheat up 800,000 mt to 27 million mt, the second largest on record. USDA yesterday estimated the crop at 26.5 million mt. Barley too was increased by 925,000 mt to 8.55 million mt and canola (rapeseed) was increased to 3.55 million mt, an increase of 138,000 mt.

Brazil’s CONAB – 2013/14 soybean crop 90.01 million mt, down from 90.33 million mt estimated last month, still a record output. USDA’s figure 90 million mt. Corn for 2013.14 75.47 million mt, down from 78.97 month on month compared with the USDA’s estimated 70 million mt. Brazilian wheat output was estimated at 5.8 million mt, 300,000 mt up from last month.

• Further stories circulate on numerous soybean cargoes for sale by Chinese importers who are returning from their Lunar New Year holidays. The nearby positions appear difficult to resell given that vessels are already in place to ship, unless there is another Chinese buyer looking for beans, and that does not seem the case. The rapidly building Brazilian export corridor is starting to look more attractive and the desire to switch is high although practicality is tough nearby. The developing situation could well place a strong cap on any further rallies, and we may well have seen a “top” in the market and potentially ease the US old crop prices.