Grain markets appear set to at least attempt a bit of a stabilizing day after the recent macro-related volatility. However, equity markets look to be considerably in the red again today following yesterday’s strength and could negatively influence grains on the re-open. The USDA’s WASDE report yesterday provided very little new for the grain markets leaving the focus on any signs of Chinese buying interest, but more so shifting to U.S. spring planting ideas amid very wet conditions across the southeast and now awaiting the USDA’s March 31 Grain Stocks and Prospective Plantings reports.
ï‚· USDA reported the sale of 194k tonnes of soybeans to unknown this morning, with 126k tonnes for 2019/20 delivery and 68k tonnes for new crop, 2020/21, delivery. While all modest amounts, USDA has reported soybean sales to unknown for three consecutive days, with old crop sales of 373k tonnes and 68k new crop. On a side note, ideas are China has bought around 2.5 MMT of Brazilian soybeans this week.
 France raised their estimate of 2019/20 soft wheat exports to non-EU destinations for the sixth consecutive month, bumping it up to 12.7 MMT from 12.6 MMT previously and compares to 9.7 MMT last year. A 100k tonne cut in domestic soft wheat demand allowed ending stocks to hold from last month at 2.44 MMT and are little-changed from last year’s 2.49 MMT. Early ideas are for a moderate reduction in soft wheat production for 2020/21 from last year’s historically large 39.6 MMT. The 2018/19 French soft wheat crop was 34.0 MMT.
 A shift in Brazil’s sugar vs ethanol production in the main-production center south region is expected for the 2020/21 marketing year according to Brazilian consultancy Agroconsult. Early ideas indicate the potential for total cane crushing to rise 1.7% in the new year to 600 MMT, with sugar production possibly rising 12% from last year to 30.1 MMT, while ethanol production declines 6% to 30.6 billion liters (8.1 billion gallons). With favorable March-April, they see the potential for cane crushing as high as 620 MMT. As a partial offset to the lower cane-based ethanol production, though, they see corn-based ethanol production in 2020/21 rising as much as 47% from last year to 2.4 billion liters (630 mil gallons), but still accounting for only around 7% of annual total ethanol production.
ï‚· The recent seating a new Malaysian Prime Minister brought with it a new Commodities Minister, as well. Upon the first meeting of the new cabinet, he stated one of the first goals is to resolve the current trade dispute with India, particularly as it relates to palm oil, with the goal of the issue being resolved in a month.
ï‚· Tunisia bought 125k tonnes of soft milling wheat following their recent tender with the lowest price paid being $206.74/tonne c&f.
Weather Argentina saw rains of .30-.80†in La Pampa and western Buenos Aries, with less than .25†in southern Santa Fe yesterday. Rains will continue across the northern ½ to 2/3 of La Pampa and Buenos Aries, as well as the southern ½ to 2/3 of Santa Fe and Entre Rios the remainder of the week with total over the next 5 days in the .70-1.5†range, with areas of 1.5â€+ also possible. The rains look to gradually work north into the rest of the Argentine growing regions over the weekend, resulting in totals of .70-1â€+ in all areas. Today’s model runs now show another front starting to show up for around Thursday of next week with very early ideas putting amounts at .25-.75â€. In Brazil, rains of .20-.80†fell across far northern sections of Mato Grosso, Goias, Minas Gerais yesterday. Rains will continue in the northern sections of Mato Grosso, Goias and Minas Gerais in the next 5 days, with activity gradually creeping south with all areas in these three states seeing rains by the weekend. Totals of 1-2†look to be common in the northern ½ of these states, with totals of .30-.70†south. More widespread rains are expected in the 6-10 day period with .50-1â€+ expected across around 85% of all Brazilian growing regions.