- Little of interest has arisen to spark trade in Chicago markets today. Rallies and breaks have failed to follow through with the main trade being corn spreads vs. wheat or soybeans as traders hope for a reduced 2017 US corn acreage in the Outlook Forum later this week. Large Brazilian yield reports continue to keep a lid on rallies and add pressure to reduced levels.
- World importers are seeing cheaper prices from Argentina for corn shipment beyond the end of March. This is going to have other world feed users looking southward for supply. The recent illegal immigration guidelines handed down by the Trump Administration yesterday is maintaining talk within Mexico that they should be switching away from US corn to other suppliers. We note that US corn is the cheapest origin for Mexico, but if the country becomes more combative and nationalistic, one could imagine that some US corn demand will be switched. The US corn market has not paid much attention, but trade switch talk is growing.
- We await the outcome of a further wheat tender by Egypt’s GASC for late March/early April in which ten offers were received, the cheapest from Ukraine. Major global wheat exporters are keen to make sales in advance of the new harvest, freeing up storage space.
- It will be hard for the market to overlook larger S American corn and soybean crops and tepid Chinese demand following the USDA report. March 1st notice day will be interesting in terms of deliveries of soybean meal, soybeans, and KC wheat. All are currently well above their respective cash markets.