US corn and soybean futures dragged grains lower in overnight trade. FSA data reveals that on top on the USDA increases in yield expectations for US soybeans we may also see an increase in sown area in the next report. The FSA also suggested that the area of corn sown in the US may also increase.
It doesn’t make it easy does it, I mean why do they even have these agencies if months after sowing the crops they are still adjusting acres, do they actually survey or just have a “bit of guess” I often wonder.
Many outside markets were softer last night which also put a negative spin on grains from the open.

Morocco are tendering for 300kt of EU and 300kt of US wheat, we should have the results in around the 21st, this will be an interesting tender and will also help outline some of the quality versus price issues that may arise going forward.

Egypt has rejected a cargo of Russian wheat on the grounds of ergot contamination which is now back to zero tolerance. This is on top of a Romanian cargo rejected for the same reason a week earlier. Russian wheat harvest is at 80% complete and has produced around 68mt thus farm. Final estimates are coming in around a record 72mt. They will be big exporters in 2016-17.