-China potential US wheat purchases discussed amid trade talks
-USDA to reopen all FSA offices temporarily
-Taiwan buys Argentine new crop corn
-Brazil 6-10 day outlook turns drier
Grain markets were modestly bid in the overnight session as the overall waffling nature of trade activity continues. Focus remains on the upcoming Jan 30-31 U.S./China trade talks and Brazilian weather, as the ongoing dryness in Minas Gerais and some other locations remains a concern, but good rains in many areas provides offsetting benefit. The 6-10 day outlook did take a drier turn today. The EIA’s weekly ethanol data is delayed until tomorrow due to Monday’s holiday.
ï‚· Bloomberg reported, according to sources familiar with the U.S./China trade negotiations, China is considering buying up to 7 MMT (257 million bushels) of U.S. wheat depending on how trade talks go, with low end of purchase ideas around 3 MMT (110 million bushels). These purchases would be for state reserves and would be expected to be done over a period of time, with small initial purchases made, but then continuing if trade talks go well. Most ideas in the market of how much U.S. wheat they would eventually buy have been around 3-5 MMT, with corn purchases thought to potentially be in the 5-7 MMT range if/when an agreement is struck.
ï‚· USDA plans to reopen all Farm Service Agency offices nationwide in order to process loans, tax documents, trade aid payments, etc. All offices will be open tomorrow, Jan 24, the entire week of Jan 28-Feb 1 and will be open Tues-Thur the week of Feb 4-8.
 Malaysia’s Prime Minister sent a letter to France’s President threatening trade retaliation of limiting imports of French products if France goes ahead with the current plan to ban palm oil in biofuels in 2020.
 Egypt’s GASC state grain buying agency secured $1 billion in renewable financing to allow for the prompt payment of wheat purchases, eliminating a concern of exporters of late following a series of delayed payments due to foreign currency shortages.
ï‚· Taiwan bought 65k tonnes of Argentine corn for April 11-30 shipment and was priced at +139.70 cents CN9 (~$210.50)/tonne c&f. The lowest offer for optional Brazil/US corn was +144 CN9 ($212.19)/tonne as Argentina turns quite competitive for new crop corn.
ï‚· China imported 420k tonnes of corn in December vs 457k tonnes last year December, bringing 2018 total calendar year imports to 3.52 MMT vs 2.82 MMT in 2017. Dec wheat imports were 240k tonnes vs 210k last year Dec, with 2018 total imports of 3.1 MMT vs 4.42 MMT in 2017.
ï‚· Tunisia received offers ranging from $259.22-$260.22/tonne c&f in its recent tender for optional-origin soft milling wheat for Feb-March shipment. Turkey tendered for 300k tonnes of soft milling wheat for Feb-March shipment, with offers due by Jan 30.
 Pakistan exported a record 219 million gallons of ethanol in 2018, up from 192 million gallons in 2017. Pakistan’s ethanol feedstock is primarily molasses, which is a by-product of sugar production.
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