-Winter wheat conditions mostly improve over last month
-South Korea takes advantage of price break to buy corn
-Ukraine winter grain crops in good condition heading into spring
-No USDA sales announcements
-Brazil weather pattern remains active, Argentine dry through 10-day outlook
Corn and soybeans saw minor overnight recoveries following yesterday’s sell-off, but wheat and soybean oil continued to work lower. Equity markets are trying to stabilize this morning as is the energy complex.
 Major winter wheat producing states provided updated end-of-month crop conditions yesterday afternoon with the majority posting increases from month ago levels. The Kansas crop is now rated 35% good/excellent and 20% poor/very poor vs 34% g/e & 23% p/vp a month ago, while year ago conditions were 51% g/e and 9% p/vp. OK conditions jumped to 46% g/e from 36% g/e a month ago and compares to 38% g/e last year, while NE conditions rose to 69% g/e from 59% g/e last month and 60% last year. TX has been providing weekly updates of late with conditions slipping a bit last week to 31% g/e from 35% previously and compares to 38% g/e at this time last year. The TX crop is already 23% heading vs just 1% at this time last year. TX also reported corn planting is getting underway in the south. SRW conditions saw notable improvements with IL now 56% g/e vs 47% g/e last month and 46% last year, while KY jumped to 86% g/e from 71% g/e last week and last year’s 62%. Other states providing updates included CO at 59% g/e vs 53% last month and 50% last year, ND at 83% g/e vs 76% last month and 68% last year and SD at 73% g/e vs 76% last month and 46% last year. MT conditions reportedly plunged to just 37% g/e from 71% last month and 52% last year, but two months ago conditions were 55% g/e so there have been significant deviations in reported conditions this winter.
ï‚· Not surprising with the sharp decline in prices yesterday, there were multiple reports of grain purchases made overnight, with South Korean feed mills buying at least 248k tonnes and mostly priced from $207.99-$208.95/tonne c&f for May shipment. There was one cargo priced at $219.98/tonne c&f reportedly U.S. origin. South Korea also bought 60k tonnes of feed wheat at $238.82/tonne c&f for July 20 arrival. However, they passed on a tender for 60k tonnes of South American soybean meal for July shipment citing prices being too high. Tunisia reportedly bought 125k tonnes of soft milling wheat for March 15-May 25 shipment following their recent tender, with prices ranging from $232.92-$233.98/tonne c&f.
 Ukraine’s state weather agency said winter crops are in good condition heading into the spring growing season following favorable winter conditions and that “winter losses are close to zero.†Winter wheat planted area is estimated down 0.6% from last year and pullback from last year’s near record yield should prompt a modest decline in Ukrainian wheat production this year from last year’s 29.0 MMT record.
ï‚· Indonesian biodiesel consumption is off to a strong start in 2020 with 706k kiloliters (187 million gallons) used in January vs the 2019 monthly average consumption of 522k kl (138 mil gal).
ï‚· There were no USDA sales announcements this morning.
Weather The Argentine forecast remains essentially dry through the 10-day forecast window. Brazil remains very active. Rains of .30-1â€+ fell across around 85% of Brazilian growing regions north of Parana, with conditions dry to the south yesterday. Rains of .50-1.5â€+ will fall in RGDS Tuesday and then will go on to bring similar results to Santa Catarina and Parana Wednesday. Conditions then look to quiet down from Parana south for the rest of the week. Hit and miss showers and thunderstorms will bring rains of .50-1.5†to most areas north of Parana in the next 5 days, while the 6-10 day period shows 1-2†for most areas from Parana north.