The old-crop contracts were the fashionable picks to extend the rally overnight, as basis strength continued on supply concerns through the summer for corn, and through early next year for soybeans. Market chatter regarding Chinese corn import prospects and South American soybean production problems looks to continue right up through the end of the week.

Iran bought 70,000 tonnes of Brazilian corn this week, in a tender for up to 150k, with shipment set for May/June.

A Russian official with the Ag Ministry estimated the 2012 grain crop at 93 MMT, down about 1 MMT from both a previous estimate and last year’s crop

The Buenos Aires Grains Exchange yesterday cut their 2011/12 corn and soybean estimates by a million tonnes each due to disappointing yields, to stand at 43 and 19.8 million tonnes, respectively.

The International Grains Council yesterday estimated 2012/13 global wheat production at 676 MMT, down 5 MMT from their previous estimate earlier this month, and down 19 MMT from 2011/12; ending stocks were pegged at 206 MMT, down 2 MMT from their last number and 4 MMT lower on the year. World corn output was left at 900 MMT, up from 865 MMT last year, with stocks up 6 MMT from the last figure and 7 MMT vs LY, to 135 MMT. The IGC followed that up today by pegging 2012/13 (July/June) Chinese corn imports at 6 MMT, up from 4 MMT in 2011/12; Chinese wheat imports were seen more than doubling the current year total to 2.1 MMT in 2012/13. Brazil’s 2011/12 soybean crop was cut by 1.4 MMT this month to 65.6 MMT, with Argentina down 2.1 MMT from last month to 42.9 MMT; Brazil’s 2011/12 exports are still seen sharply higher on the year at 35.7 MMT, with Argentine soybean shipments down around a million tonnes to 8.3 MMT.

Matt Zeller