Grains

Grain prices this morning are higher with Mar corn +1.25 (+0.35%), Mar soybeans +1.50 (+0.16%), Mar wheat +2.25 (+0.52%). Grains on Tuesday settled mixed with Mar wheat at a 4-week high: Mar corn +2.50 (+0.71%), Mar soybeans +3.00 (+0.31%), Mar wheat +6.50 (+1.52%). Bullish factors included (1) the slide in the dollar index to a 3-1/4 month low, and (2) concern that the ongoing sub-zero temperatures in the central U.S. will damage the winter wheat crop. A bearish factor for soybeans was the USDA weekly export inspections that showed 1.139 MMT of U.S> soybeans were inspected for export the week of Dec 28, down -11% from the prior week. A negative for wheat is increased wheat exports from Russia, the world's biggest wheat exporter, that may further erode demand for U.S. wheat as Russia wheat exports from Jul 1-Dec 20 are up +34% y/y at 19.9 MMT. A supportive factor for corn is increased domestic demand after U.S. ethanol production the week of Dec 1 rose +3.9% to a record 1.108 mln bpd. Strong Chinese soybean demand for U.S soybeans is a bullish factor for soybean prices as China Jan-Nov China soybean imports of U.S. soybeans are up +2.3% y/y to 26.666 MMT.