Chicago Grains Higher On The Day, Lower On The Week

Corn: The corn market also closed higher on the day but lower for the week. Informa estimated 2014 US corn plantings at 91.581 million acres, unchanged from last month and a little lower than the USDA's current forecast of 91.691 million. They also left their 2014 US corn yield estimate unchanged at 163.5 bu/acre, pegging production at 13.766 billion bushels. Conab raised their forecast for Brazilian corn production from 75.19 MMT to 77.89 MMT, with second crop corn contributing 45.66 MMT of that total versus a previous estimate of 43.74 MMT. AgroConsult estimate Brazil's winter corn crop even higher at 46.6 MMT versus a previous forecast of 42.1 MMT, although still slightly below last year's 46.9 MMT. Monday's crop progress report is expected to reveal little change in US corn conditions which were 75% good/excellent last week, far higher than 63% a year previously. The latest commitment of traders report shows managed money cutting their net long in corn by around 27.7k lots for the week through to Tuesday night. Their overall net long in now 146.4k contracts - their smallest holding since February. The Buenos Aires Grain Exchange increased their Argentine corn production estimate by 1.0 MMT to 25.0 MMT. Harvesting is still only making slow progress at 42% complete compared to 74% this time last year. Jul 14 Corn closed at $4.47, up 3 cents; Sep 14 Corn closed at $4.43, up 3 cents. Jul 14 corn was still down 12 cents on the week.

Wheat: The wheat market closed a little higher on the day, but still with some fairly hefty losses for the week. Kansas wheat displayed the most strength as now unwelcome rains continue to disrupt the harvest there. "Kansas City’s strength may have been related to a weekly harvest report from US Wheat Associates. It pegs harvest at 30 to 40% complete in TX/OK, with yields averaging just 19 bu/acre. Average protein of 14.3% is higher than last year," said Benson Quinn Commodities. That yield figure is the equivalent of little more than half a tonne an acre. Informa estimated the US 2014 spring wheat area at 12.179 million acres, up from 12.059 million previously and versus 12.009 million from the USDA. One or two analysts are scaling back their ideas on Russian wheat production potential. Conab estimated the Brazilian 2014/15 wheat crop at 7.37 MMT versus 6.88 MMT previously and up 33% from 5.53 MMT a year ago. They see imports in 2014/15 falling to 5.5 MMT from an estimated 6.7 MMT this season. Last week the USDA had the US spring wheat crop at 71% good/excellent versus 62% this time a year ago. Those ratings may have risen 1-3 points in Monday's upcoming report. The latest commitment of traders report shows managed money flipping from a net long of around 1k lots in Chicago wheat to a net short of around 27k contracts as of Tuesday night. Jul 14 CBOT Wheat closed at $5.86, up 3/4 cent; Jul 14 KCBT Wheat closed at $7.13 1/4, up 7 3/4 cents; Jul 14 MGEX Wheat closed at $6.83 1/2, up 1 1/2 cents. For the week CBOT wheat was down 32 1/4 cents, with KCBT down 22 1/4 cents and MGEX losing 25 3/4 cents.