Dryness Concerns in Brazil

In the overnight session corn was unchanged, soybeans traded 5 1/4 cents higher and wheat improved 2 1/2 cents.

Brazil’s key growing state of Mato Grasso is seeing dryer than normal planting conditions as Brazilian producers ramp up planting. Over the last thirty days the majority of Mato Grasso is 3 ½ or more inches behind normal rain fall totals. Weather models are projecting a wet week for central Brazil, with an inch of precipitation possible across the majority of key growing areas. This should work to neutralize dryness concerns in the short run for central Brazil.

Egypt’s state grain buyer GASC is expected to announce the result of their most recent tender today. Traders indicate that French, Russian, and Romanian wheat was offered with no offers from the United States. Staying on the wheat front, Syrian officials have announced they will import up to 1 million tonnes of wheat this marketing year as the country’s civil war has cut domestic production in half. Yesterday’s export inspections report showed that 481 thousand tonnes of U.S. wheat was inspected for export last week, right in line with trade expectations.

作物昨晚发布显示进展that harvest is now complete for 31% percent of corn area which was right around analyst expectations. This years pace lags the five year average of 53% percent by this time of the year. Last week the amount of harvested acres in the U.S jumped only 7 percent.
Soybean harvest progress also came in on pace with expectations, reporting 53% harvested compared to a five year average of 66%. Over the last week harvested acreage improved by 13 percent.

Weather throughout the grain belt should be clear today with some slight showers coming into the picture in the western grain belt on Wednesday. Any delays due to the precipitation should be minor. Friday should usher in more precipitation before the forecast clears up over the weekend.

—Cody Bills