Corn and Soybeans Posted Small Losses in the Overnight Session

Grains were mixed overnight with corn and soybeans posting small losses while wheat posted a modest gain. In outside markets, the US dollar continued to sink while crude oil had a modest drop after hitting fresh highs in the previous session.

On Wednesday, Argentina’s grain exchange said one third of soybean farms remain swamped after early April storms, with crop loss estimates at 5 MMT as harvesting starts in areas dry enough to support field work. The exchange estimates this year's crop at 59 MMT, a forecast that is likely to fall in the weeks ahead as the sun comes out and farmers measure flood-related losses. Last week the Buenos Aires Grains Exchange chopped its harvest forecast to 56 MMT from 60. The first cold front of the Southern Hemisphere autumn hit Argentina on Sunday, ending the rains. Mostly fair weather is expected in May, which should allow harvesting machines to get to farms left isolated when floods washed out the poorly maintained roads that crisscross the Pampas.

In the US, the Midwest is slightly drier Sunday. Abundant rains in central and southern areas through the weekend will slow corn and soybean planting, but will improve soil moisture, especially in western areas. The 6-10 day outlook is warmer in northwestern areas. The Plains are wetter in northwestern areas in the 6-10 day period. Additional widespread showers through the weekend will continue to build moisture and winter wheat conditions. The rains will be most beneficial in southwestern areas.

Saudi Arabia's main state grain agency, the Saudi Grains Organization (SAGO), said on Thursday it was seeking 550,000 MT of hard wheat in a tender. The wheat should contain 12.5 percent protein and will be for shipment from July to August, SAGO said in a statement. The deadline for offers is Friday, it said.

The Federal Reserve kept interest rates unchanged on Wednesday but signaled confidence in the U.S. economic outlook, leaving the door open to a hike in June. The U.S. central bank's policy-setting committee said the labor market had improved further despite a recent economic slowdown and that it was keeping a close eye on inflation. It added that global economic headwinds remained on its radar, but removed a specific reference from its last policy statement to the risks they posed. The US dollar initially reversed its recent slide on this news but continued lower in the night session, giving up 0.5%. The US dollar index has lost 5% of its value since March 1.

WEEKLY EXPORT SALES

OC-Act OC-Exp NC-Act NC-Exp

Corn 2,160 1,000-1,300 440 200-400

Soybeans 226 400-600 720 300-500

小麦351.9 75 - 175 454.7 300 - 450

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—Kevin McNew