For Wheat, thus far in the marketing year, cumulative 2007/08 wheat inspections are 56.5% stronger than year earlier levels. No new global harvest during the month of February could keep ideas of cancellations minimal. In over night news Pakistan bought an additional 60,000 metric tonnes overnight, adding to the 500,000 MT bought on Monday of their 610,000 MT tender. None of the wheat that Pakistan has purchased is of US origin. Of interest is that Turkey, traditionally self-sufficient in food and normally exports grain, is tendering for wheat and corn. Turkey's grain crops last year were drought damaged, thus the reason for them issuing purchase tenders.
Corn inspected for the week ending January 17th was 45.82 million bushels. This is just below the amount needed on a weekly basis to stay inline with USDA projections. Cumulative inspections for corn are running 13.9% above a year ago. Overnight South Korea bought 220,000 MT of Optional Origin corn.
Thus far in the marketing year, cumulative 2007/08 soybean inspections are 8% weaker than year earlier levels. This is disappointing as we approach the South America soybean harvest. The Soybean market is most vulnerable to the immediate talk of recession. As the South American soybean crop approaches pod fill in late January and early February, we must recognize that if a 60 MMT crop is in the works for Brazil and a 47-49 MMT Argentine crop also looks possible, pressure to futures and cash prices are plausible. In the daily export news South Korea is currently tendering for 150,000 MT of Optional Origin non-GMO soybeans.
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