Overnight Grains

The overnight markets are mixed, mostly a little higher Friday morning with soybeans up around 4 cents, wheat a cent or so firmer and corn slightly lower.

For wheat there seems to be far more concern developing over drought in the US southern plains than in China. It appears to be a case of the closer to home the problem, the more important it becomes.

"The newly released outlook for March shows drying for the Southern Plains, Gulf States and Southeast. Early season row crops may get off to a poor start if this forecast verifies," says Allen Motew of QT Weather.

The worst Chinese drought in fifty years has officially been downgraded to level two, with the government now saying that things are no worse than this time last year. They couldn't possibly be lying could they?

For soybeans the announcement of a four day strike by Argy farmers last night ahead of talks with the government next Tuesday is obviously supportive.

Talk of possible upcoming Chinese cancellations on soybeans will keep traders cautious from getting too carried away to the upside.

The USDA will release it's weekly export sales data at 13.30GMT. Here is what is expected: Wheat 250-450,000MT: Corn 850-1,500,000MT; Soybeans 700-850,000MT. Some pretty solid numbers there. I thought there was a recession on?