Grains continued their rally into Wednesday finding more buying strength overnight.
Yesterday’s action was spurred by rumors of a White House executive order that would allow E15 gasoline to be sold more easily during summertime months as well as a potential biodiesel credit to be reinstated and limit methyl ester from Argentina. However, by mid-day the White House denied any such action was in play leaving the soy market up 15 but 20-below its high of the day and corn off 12 from its high.
Overnight, Japan has said they will tap into 330,000 MT of corn from emergency stockpiles after inventories fell to critically low levels due to a delay in shipments from the United States. Overnight Egypt has said they have enough locked-in wheat supplies to cover their needs for the next 4 months due to recent buying activity, including a 535,000 MT deal on Monday. India is likely to impose an import tax of 25% on wheat, reinstating the tariff after a gap of nearly three months following big purchases from overseas in recent months.
Brazil saw scattered showers overnight. Southern & Western Brazil could see more rains in mid-March which could be detrimental, but overall yield potential continues favorable. The US HRW belt sees no change in its dry outlook for the first week of March.
The dollar hit a seven-week high on Wednesday on hopes the U.S. Federal Reserve would lift rates this month, after hawkish comments from two of its top officials overshadowed U.S. President Donald Trump's first major policy speech to Congress.