Grains were Lower in the Overnight

Grains were lower overnight giving up most of Monday’s gains. In outside markets, S&P futures were modestly lower as was crude oil.

Grains got a bit of a lift on Monday as USDA’s weekly export inspections report showed corn and soybean exports for the week above analyst expectation. This pushed grain prices to their highest point in two weeks but they quickly backed off as abundant global supplies continue to pressure prices.

In overnight news, there was fresh export activity. A South Korea firm bought 67,100 MT of US milling wheat while the Philippines and Thailand had tenders out for feed wheat. Saudi Arabia said it would be tendering soon for wheat, marking their first foray into the wheat market this year. Also, South Africa announced they would relax some of their tough rules on GM crops so it can ramp up corn imports from the US and Mexico to avert a food crisis.

乌克兰的粮食产量可能会下降10塞nt to 52.2 MMT in 2016 due to a sharp decrease in winter wheat output caused by poor weather during the sowing, analyst UkrAgroConsult said on Tuesday. The wheat harvest is likely to decrease to 17.3 MMT this year from 24.8 MMT in 2015, the consultancy said in a statement.

Oil markets settled up as much as 6 percent on Monday as speculation about falling U.S. shale output and a rally in equities fed the notion that crude prices may be bottoming after a 20-month collapse. Prices began the week with a rebound in Asian trade, reacting to Friday's U.S. rig count data. The number of oil drilling rigs in operation fell to a December 2009 low after nine straight weeks of cuts. Oil got a further boost after the International Energy Agency, the world's oil consumer body, said U.S. shale oil production could fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017. However, a Reuters poll forecast that U.S. crude inventories rose 3.2 million barrels last week to record highs above 504 million barrels. EIA will release their latest inventory data Wednesday morning.

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—Kevin McNew