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February 27th 2017 | Global Ag News Highlights

USDA Agency Reports    

Feb 27th, 2017 by Steve Freed

Grains are mixed. SK is up 2 cents and near 10.15. CK is unchanged and near 3.64. WK is down 2 cents and near 4.28. There was good overnight corn volume linked to spreading before first notice day. March deliveries could be heavy for wheat and soyoil and moderate for soybeans. US Dollar is mixed to lower. Crude is higher. Gold and Copper are lower.

Chinese Ag futures were down 12 yuan for soybeans, down 9 in corn, up 11 in soymeal, up 20 in soyoil, and up 38 yuan in palm oil. Malaysian palm oil prices were down 27 ringgit at 2782, basis May, hitting a four month low on ideas of rising output and, weak demand.

USDA est US 2017/18 soybean carryout near 420 mil bu. This is equal to 2016/17 and thought to be a little supportive given est increase in acres. Most private est are higher due to lower demand. Brazil Holiday could slow farmer selling there.

USDA est US 2017/18 corn carryout near 2,215 mil bu. Most private est are lower due to lower acres, yield and higher feed demand. Corn supported by record demand. Record large US old crop supply could limit the upside.

USDA est US 2107/28 wheat carryout near 905 mil bu. Most private est are higher due to lower demand. Record World supplies offers resistance to wheat prices.

Brazil weather is est to be wet and cool this week. Soybean harvest is still est to be ahead of ave. Key is will farmers increase cash sales as harvest progresses. Argentina will be mostly dry this week.

Funds bought 2,000 soybeans and 2,000 soyoil and sold 2,000 soymeal, 3,000 corn and 6,000 wheat on Friday. Funds are estimated to be long 154,000 soybeans, 64,500 soymeal, 44,500 soyoil, 90,000 corn and net short 33,000 wheat.

                      Support      Resistance
May Beans        1020          1030
May Bean Oil     32.50         33.00
May Meal           335            340
May Corn           365            375
May CGO Wheat 440           450