Grains go green

Grain markets were higher on positive trade news. “The market was all a buzz this morning on talks that China has interest in buying up to $30 billion in US goods (including soybeans),” Ami Heesch, with CHS Hedging, said. “The Ag markets saw a bounce off yesterday’s lows.”

The USDA Outlook Conference also provided some support. “Support was also seen from the USDA Outlook Conference Board estimate for 2019-20 soybean acres at 85.0 mln compared to 89.1 mln last year and the average estimate of 86.1 mln for the Outlook Board release.”

Corn

Corn has received some good news, but markets haven’t been able to make a sustained move higher. “Despite what is thought to be friendly news, the March remains trapped in a 10-cent trading range,” Ami Heesch, with CHS Hedging, said.

Ethanol production continued to be down from previous weeks and last year. “Today's ethanol production for the week ending Feb. 15 was below estimates coming in at 996,000 barrels per day. This is down 3.21% vs. last week and down 6.74% vs. last year. Total Ethanol production for the week was 6.972 mln barrels."

Soybeans

Soybeans had support from a few factors. “The soybean market bounced higher, recovering from yesterday’s losses on talk of China looking to possibly buy additional US soybeans,” Ami Heesch, with CHS Hedging, said. “Prices garnered additional support from an expected 4.0 mln reduction in US soybean acreage this year.”

“Brazil's Parana state rural economy agency Deral lowered soybean production to 16.4 mln tonnes from 16.9 mln in January due to drought conditions,” the Hightower Report said. “This would be down 15 percent from last year's production of 19.2 mln tonnes. They see average yields at 45.0 bushels per acre down from 46.2 bushels in January. Harvest progress is estimated at 42 percent.”

Wheat

The China news also helped wheat markets. “Support has come from the early morning comments from the US/China trade talks with China officials proposing that it could buy an additional $30 billion per year of agriculture products which would include corn, soybeans and wheat as a possible deal is being negotiated,” ADM Investor Services said.

“The market is extremely oversold and in need of positive news after missing out on the Egyptian tender yesterday,” ADM Investor Services said. “Slumping global prices and lower freight rates have boosted global competition in the wheat trade. World wheat values have fallen over the last two weeks with French wheat the cheapest in the world."

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