-Headline-reading trading sentiment continues in grains
-Brazilian soybean crop ideas continue moving solidly lower
-Paraguay looks to imports to satisfy soybean crush demand
-China reiterates reduced soy/SBM usage goals
-USDA reports new crop soybean sales to China
Grain markets posted modest overnight gains following yesterday’s notable weakness, with the focus remaining on the mostly dry/hot near term South American forecast, but with improved rains still in the forecast for the 6-10 day and extended guidance periods. Ideas of prospective improved rains being too little/too late are increasing. NATO officials have said there has been no material pullback of Russian troops from the Ukrainian border yet and, if anything, has noted additional buildups in some locations, but Russian officials point to videos showing tanks and various vehicles/equipment pulling out of Crimea, while cyber attacks against Ukrainian financial and government organizations continue.
 Following their tour across five key-producing regions, Agroconsult lowered their estimate of the Brazilian soybean crop to 125.8 MMT from 134.2 MMT estimated prior to the tour and compares to the USDA’s last estimate of 134.0 MMT and last year’s 138.0 MMT. Very strong yields were cited across northern cerrado growing regions, but more than offset by very poor yield expectations across the south.
 Chinese officials said continued adoption of the lower protein/alternative protein feed ration guidelines issued last year could further reduce annual soybean demand by 30 MMT and soybean meal usage by 23 MMT. In 2021, soybean meal’s average feed ration content nationwide reported declined to 15.3% from 17.7% in 2020, while SBM’s inclusion in feed produced by the country’s top 33 feed companies declined to 11.8% from 13.4% in 2020. Last year, officials issued voluntary guidelines to reduce SBM and corn inclusion in pig and poultry feed rations, calling for increased used of alternative grains/proteins, increased amino acid usage and increased forage consumption.
 The Paraguayan Chamber of Oilseed and Cereal Processors said the ongoing drought could result in a 60%+ reduction in this year’s soybean crop from last year’s near 10 MMT output, resulting in crushers likely running out of soybeans to crush by mid-marketing year. Crushers are likely going to have to import soybeans for the first time ever, but the current tax structure for imported soybeans does not work economically so import tax exemptions are being sought. USDA is currently estimating Paraguay’s soybean crop at 6.3 MMT vs 9.9 MMT last year, crush at 2.2 MMT vs 3.3 MMT last year and exports at 4.15 MMT vs 6.33 MMT last year.
ï‚· USDA reported the sale of 132k tonnes of new crop, 22/23, soybeans to China this morning, but no old crop sales as traders had been looking for confirmation of recent ideas some old crop purchases off the Gulf have been made.
 Malaysia’s palm oil import tax will hold steady at the maximum 8% rate in March.
ï‚· Syria passed on their recent tender for 200k tonnes of milling wheat. Iran issued another tender for 60k tonnes each of corn, soybean meal and barley for Feb-Mar shipment, with offers due by today. Iran passed on their previous tender, with their last purchase being 180k tonnes of South American SBM on Feb 4