-Chinese SBM rally strengthens soycomplex overnight
-Equity markets rebound strongly after Fed announcement this morning
-Argentine port strike averted
-EU wheat yields seen declining
-Russian wheat prices stabilize after 7-week decline
-Wheat rallies on Russian export limit talk
Equity markets were limit down at one point overnight, but rebounded solidly (currently trading higher) following a Fed announcement this morning essentially putting no limit on asset purchases as well as other programs beginning today aimed at keeping the economy moving. The soycomplex was strong overnight following rallies in Chinese markets on concerns of slowing imports from Brazil. Wheat rallied on talks Russia may again entertain the need to slow exports as the government seeks input from the industry on the need, or lack thereof, for such a move.
ï‚· Chinese soybean meal futures on the Dalian exchange hit limit up on Monday as some domestic crushers are suspending operations reportedly due to shortages of soybeans as earlier shipment activity out of Brazil was slowed by heavy rains and now there are fears coronavirus implications may begin to impact South American operations, as well. Chinese soybean crush last week fell 5.7% from the previous week and was said to be the lowest weekly crush since 2016.
ï‚· The previously-announced Argentine port strike to begin today was averted with an agreement being reached. Argentina is on holiday today and tomorrow.
ï‚· Morocco will extend the current import duty suspension on for another 45 days to June 15 to ensure continued supply. A sharp decline in grain production is expected this year, with their latest estimate of 4.0 MMT in total cereal production down from 5.2 MMT last year, as rainfall since the start of 2020 is down 40% from last year.
 Brazil’s soybean harvest is 70% complete vs 68.5% average according to ag consultant ARC Mercosul.
ï‚· SovEcon further bumped their estimate of Russian wheat exports in March higher to 2.8 MMT from 2.7 MMT previously, which was raised notably from earlier ideas of just 2.1 MMT. Year ago March exports were 1.93 MMT.
ï‚· The EU crop monitoring agency MARS sees the average soft wheat yield across the bloc declining 2.1% from last year, with rapeseed yield rising 6.8%. They did not provide actual production estimates.
ï‚· Russia 12.5% protein Black Sea wheat export prices held steady last week at $207/tonne fob after declining for 7 consecutive weeks.
ï‚· Algeria tendered for an unspecified amount of milling wheat for June shipment. In their last tender, Algeria bought around 680k tonnes of wheat for May shipment at $226-$227/tonne c&f, believed to be mostly French origin.
ï‚· Saudi Arabia bought 1.2 MMT of feed barley at an average price of $201.04/tonne c&f for May-June arrival periods.
 Friday afternoon’s USDA Cattle on Feed report was mostly as expected, but reflected a notable reduction in placements relative to last year. March 1 Cattle on Feed was reported at 100.2% of last year vs the average estimate of 100.3% of last year and declined solidly from Feb 1’s 102.2. February placements were 92.1% of last year, a bit below average expectations of 92.4 and down from February’s 99.4. March marketings 105.5% of last year were in line with average expectations of 105.6 and jumped from 101.1 in February.
Weather Rains of .50-1â€+ fell in the Brazilian growing regions north of Parana, with things mainly dry from Parana south over the weekend. Dry weather also dominated all of the Argentine growing regions over the last few days. Brazil is expected to see 1-2†fall in most of Mato Grosso, Goias and Minas Gerais in the next 5 days, with little in the way of rainfall elsewhere. The 6-10 day sees rains of .50- 1â€+ to fall in most areas. Argentina appears on tap for .50-1â€+ across northern Buenos Aries/La Pampa and southern Santa Fe Entre Rios on Wednesday. The 6-10 day indicates rains of .50-1.5†to fall in most areas by Monday and Tuesday next week.