-Russia raises grain production/export estimates
-South Korea buys corn priced well below U.S. again
-Favorable rains remain for most South American growing regions
-South Korea buys corn priced well below U.S. again
-Favorable rains remain for most South American growing regions
Grain markets eased a bit overnight with demand news limited and harvest activity being able to get back into full swing in many locations ahead of some modest rains expected this weekend. The dollar is stronger this morning, while equities appear set to see some slight pressure. Energies are rebounding modestly from yesterday’s notable weakness. EIA ethanol data is out later this morning, with production rates potentially showing the effect of the negative margin structure in many locations.
 During the session yesterday, Russia’s ag ministry raised their estimate of this year’s total grain crop to 109 MMT from the previously-expected 106 MMT citing favorable harvest weather in the Siberian region. While they did not provide a breakdown of increased production estimates by grain, with Siberia typically accounting for nearly 50% of Russia’s total spring wheat production, the assumption would obviously be that the 3 MMT increase in production would heavily favor wheat. With the increased production, Russia sees 38-39 MMT of total grain availability for export vs previous expectations, cited last week, of 35 MMT.
ï‚· Algeria is believed to have bought 500-600k tonnes of milling wheat following their recent tender, with prices from $256-$258/tonne c&f, and largely expected to be sourced from France. A few cargoes are seen potentially coming from Argentina, as well.
 South Korea bought 70k tonnes of optional-origin corn at $203.75/tonne c&f for Jan-Feb shipment and was priced below yesterday’s reported South Korean purchase of 138k tonnes at around $205.50/tonne c&f, which was seen as being Brazilian origin. With current freight from Paranagua to Korea quoted around $51.61/tonne, the fob Paranagua value would be implied at around $152/tonne, while fob Gulf corn for Jan shipment is currently around $173/tonne.
 A French corn farmers’ group said they see this year’s corn crop at 11.8 MMT, down from last year’s 13.4 MMT and below the French ag ministry’s latest estimate of 12.2 MMT.
 China sold 88k tonnes of the 104k tonnes of reserve soybeans offered at this week’s auction at an average price of $450.90/tonne, up from the last week’s average price of $439.79/tonne.