As expected weekly US wheat export inspections were poor. It did have a negative impact on wheat values but it wasn’t as big a deal as those looking to sell were making it out to be. At just 260kt it is indeed well below the weekly volume required to meet USDA projections but given the holiday and compared to the same period last year when just 235kt was exported it’s not exactly a true indication of what US demand may presently be. Asian customers were the dominant buyers again.

While much of the Brazil soybean area remains dry the same cannot be said for Argentina. Social media is starting to pass around some ugly images of failed soybean crops in parts of Mato Grosso & Parana. While further south is Argentina rainfall has been significantly better with much of the crop land seeing 100% – 150% of the normal 30 day rainfall. This is a stark contrast to the 40% – 60% of normal rainfall much of SE and central Brazil has seen in the last 30 days.
Combining the dry conditions across Brazil and the expected increase in orders from China for US soybeans this is resulting in continued support from CME soybean futures. This support is rolling over into other oilseeds in most instances. ICE canola futures are at the highest level since mid December while Paris rapeseed is also showing similar improvements.
The weather forecast is appearing a little cruel for S.America too. With floods predicted for much of Argentina over the next 16 days while the driest parts of Brazil remain dry.