- Probably the most interesting item on today’s agenda has been the USDA’s Outlook Conference from which we see the 2014 US soybean acreage at 79.5 million acres, an increase of 3 million year on year. Corn on the other hand is seen at 92 million acres, which is a 3.4 million acre decline from last year. Total wheat acreage at 55.5 million acres is a 700,000 acre decline year on year. In addition to acres, the Outlook conference projected average cash prices with soybeans at $9.65/bu, corn at $3.90 and wheat at $5.30.
- Nearby soybean cargoes are, once again, the subject of Chinese cancellation discussion, and rolling forward is also on the table as stocks at destination are reported to be growing as crush margins decline. We are all aware of the “switch off” which can take place in Chinese crush if margins drop into the red, and this will impact shipment programmes.
- Reuters have today reported on congestion at Brazil’s Santos port. Road access, truck parking limitations and bureaucratic issues combine to hinder the export of what looks like a record soybean harvest.
- Brussels has issued weekly wheat export licences amounting to 860,029 mt bringing the season total to 20.318 million mt, which is 6.4 million mt (46.16%) ahead of last season. Despite last week’s tonnage decline, which many suggested would pave the way for a “tail off” into the end of the season, we see another big week of exports. When will it end?