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Soybeans, corn, wheat up after USDA numbers

Soybeans were higher on fund and technical buying. The USDA cut U.S. ending stocks, with a decline in quarterly stocks and 2022 production below 2021. The USDA did raise the soybean guess for Brazil while lowering the outlook for Argentina. The Rosario Grain Exchange cut its outlook for Argentina to 37 million tons, compared to their last guess of 47 million. CONAB has Brazil’s bean crop at 152.718 million tons, 0.5% less than December, but still record large and up 21.6% from 2022. U.S. export sales of 717,400 tons were down 1% on the week and 41% from the four-week average, mainly to China and Germany, with a cancellation by unknown destinations. Soybean meal and oil were supported by the strength in beans.

Corn was higher on fund and technical buying. U.S. ending stocks were below a month and a year ago with a 9% decline in production and 7% decrease of quarterly stocks. The USDA did cut exports but left ethanol alone for now. Last week’s corn export sales were 255,700 tons, a decrease of 20% from the prior week and 62% from the four-week average, primarily to Mexico and China with a cancellation by unknown destinations. The USDA lowered the corn estimates for both Argentina and Brazil. The Rosario Grain Exchange slashed Argentina’s corn crop to 45 million tons, 10 million below the prior projection. CONAB sees Brazil’s first corn crop at 26.461 million tons, 2.8% below last month, but, if realized, 5.7% above last year. CONAB pegs Brazil’s second corn crop at 96.271 million tons, up 12.1% on the year.

The wheat complex was higher on fund and technical buying, along with the lower trade in the dollar during the session. U.S. ending stocks were under a month ago and quarterly stocks were down on the year, while U.S. winter wheat acreage was up 11%. That included a 10% increase in hard red winter and a 20% jump for soft red winter. The global numbers weren’t overwhelming bearish, with the USDA potentially waiting to make changes in the coming months. Production for Australia and Russia were unchanged, while Ukraine’s crop was up slightly on the month. IGC has the global wheat crop at 796 million tons, 5 million more than a month ago and 15 million above a year ago, if realized, including a month-to-month increase for Ukraine. CONAB says Brazil production a record 9.8 million tons of wheat last year. Weekly U.S. wheat exports were 93% higher than the week before, but 73% lower than the four-week average, mostly to China and the Philippines.

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