Soybeans Lead the Overnight

Grains were higher overnight with soybeans leading the complex. Oil also continued to climb hitting fresh 6-month highs.

Brazil's Senate voted on Thursday to put President Dilma Rousseff on trial in a historic decision brought on by a deep recession and a corruption scandal that will now confront her successor, Vice President Michel Temer. With Rousseff to be suspended during the Senate trial for allegedly breaking budget rules, the centrist Temer will take the helm of a country. The Brazilian Real is up 12% against the US dollar since March 1 on the potential removal of Rousseff from office.

This morning’s export sales from USDA was a real disappointment for soybeans. Combined old- and new-crop sales were 219K MT versus expectations at the low end of 675K. So far for 2016 new-crop soybean sales are at 3.26 MMT versus the same time last year of over 4.4 MMT. This week’s wheat sales were strong, with bold old- and new-crop deliveries besting expectations. At 8 AM CDT USDA announced a flash sales of 210,000 MT of corn to Saudi Arabia for old-crop delivery.

Weekly Export Sales

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

Corn 1,105 900-1,200 150.4 175-325

Soybeans 212.4 350-500 6.9 325-450

Wheat 294.9 50-175 387.9 200-350

In crude oil. EIA data on Wednesday pointed to a significant draw-down in US crude stocks. Inventories were off 3.4 million barrels versus expectations of a 0.7 million barrel build.

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—Kevin McNew