-Malaysian palm oil stocks higher than expected – exports near 15-year low
-USDA reports cancellation of 132k tonnes of corn to unknown
-Indian soybean meal exports strong
-Brazil soybean vessel lineup strong, but Feb exports questionable
-Brazil forecast remains wetter than desired
Grain markets were solidly lower overnight, with corn extending gains following yesterday’s disappointing USDA numbers, while soybeans and wheat followed suit. The weeklong Chinese New Year holiday begins on Friday, while U.S. markets will be closed Monday for the Presidents’ Day holiday.
 The Malaysian Palm Oil Board reported end January palm oil stocks were 1.325 MMT, solidly above average market expectations of 1.287 MMT (1.158-1.360 MMT range of ideas) and up from 1.266 MMT in December, but still well last year’s 1.755 MMT. The higher than expected stocks were due to exports of 947k tonnes falling short of expectations of 1.056 MMT (1.0-1.5 MMT range) and down sharply from 1.643 MMT in Dec (1.282 MMT last year). Moreover, Jan exports were the lowest for any month since February 2007. January palm oil production in Malaysia was 1.127 MMT, below average expectations of 1.160 MMT (1.108-1.400 MMT range) vs 1.334 MMT in Dec and 1.172 MMT last year.
 Brazil’s ag exporter association ANEC indicated February soybean exports from the country could reach 6.0-7.6 MMT based on vessel line-ups vs January exports of only 49k tonnes, but would appear extremely unlikely given the historically slow early
harvest progress and, accordingly, lack of available supplies at ports. Last year, Brazil exported 4.8 MMT of soybeans in
February. ANEC sees February corn exports around 535k tonnes vs 339k tonnes exported last year and 2.55 MMT shipped in
January.
ï‚· CORRECTION: After posting our comments, wire services corrected the daily announcement to be a cancellation of 132k
tonnes of corn to unknown for 2020/21 delivery this morning.
 France modestly raised their estimate of 2020/21 wheat exports to non-EU destinations to 7.45 MMT from 7.27 MMT previously, but remains nearly half of last year’s record 13.6 MMT following the historically poor crop last season of 29.1 MMT (39.6 MMT year prior). A better year is on the horizon, though, with an estimated 15%+ increase in wheat area estimated for 2021/22.
 Indian soybean meal exports are surging, as previously reported was expected by the Soybean Processors Association of India as a result of sharply higher global values and last year’s strong Indian soybean crop. India exported 336k tonnes of soybean meal in January vs only 58k tonnes last year in January and the highest monthly total in 6 ½ years, with exports through the first four months of 2020/21 (Oct-Jan) of 950k tonnes more than triple last year. Expectations are for marketing year total SBM exports to exceed 2 MMT vs last year’s 825k. The largest exports in January went to France, Germany, Indonesia and Bangladesh.
 The Argentine truckers’ strike ended after 20 days, resuming grain flows to ports that were impacted, mostly grain exports out of Buenos Aires – particularly barley. The main ag ports in Rosario were not impacted by this strike.
Weather
Rains of .25-.75†fell across RGDS, Santa Catarina and far northern sections of Minas Gerais, Goias and Mato Grosso yesterday. Rains of 1-2†are expected across the majority of the Brazilian growing regions in the next 5 days, while the 6-10 day period shows 2-4†in MGDS, Mato Grosso, Goias and Minas Gerais, with totals of .50-1.5â€+ in Sao Paulo and MGDS and generally less than .50†with coverage of around 65% in RGDS, Santa Catarina and Parana. Argentina saw .25-.75†across Corrientes and far northern Santa Fe yesterday, with conditions dry elsewhere. Rains of .50-1.5†look to fall in most of Buenos Aries, Entre Rios, as well as most of Corrientes in the next 5 days, with little expected elsewhere, while conditions look dry nationwide in the 6-10 day period.