-Wheat prices firm as Ukraine milling wheat exports near limit
-No new developments in U.S./China trade situation
-Palm oil prices seen firm over coming months
-Brazil sees widespread rains, but amounts less than desired
 Wheat prices were modestly higher overnight following Ukraine’s ag minister issuing a warning/statement to the country’s grain exporters to closely monitor wheat exports moving forward as shipments are nearing the previously-agreed up levels for the 2018/19 marketing year. Companies were asked to submit export plans for the remainder of the year, which ends June 30. So far, 6.6 MMT of the agreed 8.0 MMT of milling wheat exports have been shipped, but only 4.8 MMT of the allowed 8 MMT in feed wheat exports have been shipped.
 Soybeans and corn were little-changed in the overnight session following Friday’s price strength on continued optimism over an improvement in the U.S./China trade situation. Without any new evidence, though, of China returning the market, Friday’s optimism ran out of steam for the time being. No further development on last week’s ideas of a potential reduction/elimination in Chinese tariffs has been seen.
 Export Inspections will be out this morning, while the EIA’s weekly ethanol data will be released on Thursday.
ï‚· According to Safras & Mercado, as of 1/18/19 the Brazilian soybean crop is 5% harvested vs less than 1% at this time last year and 1% average. Parana is already 13% harvested vs 1% average, while Mato Grosso is 10% vs 4% average.
 Egypt’s state grain buying agency, GASC, will begin issuing letters of credit for wheat purchases immediately on site for purchases moving forward, which is thought to potentially lower their prices paid by $5-6/tonne given the reduced risk premium. GASC’s previous delays in issuing letters of credit left exporters demanding a risk premium for wheat purchases.
ï‚· Palm oil industry analyst Dorab Mistry said he expected benchmark palm oil futures to rise to around 2,400 ringgit/tonne ($584) by the end of March from current values of 2,263 ringgit/tonne ($551), as combined Malaysian/Indonesian palm oil stocks could decline to around 6 MMT by April-May vs the 6.5-7.0 MMT in stocks in Nov-Dec. Palm oil production in the two countries combined could rise by only 3 MMT in 2019, with Malaysian production seen at 19.0-19.5 MMT and Indonesian at 44 MMT.
ï‚· Chinese officials said they will continue to improve grain handling and reserve systems in the country as regulations on strategic reserves and movement of grain will be strengthened in 2019. More than 360 MMT of grain purchases were made from farmers in 2018 nationwide. Net reserve reductions were made in 2018 of around 100 MMT of corn, 17 MMT rice, 11 MMT wheat, more than 2 MMT soybeans, 420k tonnes rapeseed oil and 2.5 MMT cotton.
ï‚· Indonesia bought 30k tonnes of corn, believed to be Argentine, at $217-$219/tonne c&f for March 15 arrival. Syria bought 200k tonnes of Russian wheat at $270/tonne c&f for Feb-March arrival. Turkey bought 342k tonnes of corn over the weekend in what amounted to 38 separate tenders for 9k tonnes each. Prices paid ranged from $194.00-$205.50/tonne c&f for Jan 28-March 17 shipment periods.
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