Corn futures inched higher early Wednesday morning after testing contract lows the previous session. Profit taking during the seasonally low-news time of year helped markets higher, but increased U.S. and S. American supplies along with a falling export pace have kept prices at or near lows. Weekly ethanol production estimates will be released this morning at 930 a.m. Weather in S. America remains a swing factor, challenging the USDA’s forecast for Argentina and Brazil’s corn production at 26.50 mmt and 85.00 mmt, respectively. The Supply/Demand report, along with the Crop Production and Grain Stocks reports will be released Jan 12. Funds were to have sold 7,500 corn contracts Tuesday. March corn futures were 0.75 cents higher at $3.67 early Wednesday morning, while May gained 0.75 cents at $3.7325. Following Tuesday’s move lower, soybean futures edged higher Wednesday morning, still shy of breaking above the 100-day moving average of 8.88 after jumping 16 cents last Friday on Brazil weather. Consensus now surrounds the question of, how much, not if, Brazil’s soybean production will be lower, with analysts’ estimating a decrease of 1-5 mmt. As China seeks greater access to food, their largest grain processor, state-owned COFCO, will aquire Noble-Agri for $750 million, and will be renamed COFCO Agri. The moved position China with international grain assets, rivaling the “ABCD� quartet of grain conglomerates. January soybeans moved 1.25 cents higher to $8.865 early Wednesday, while Jan soyoil gained 20 points to 30.64 cents per pound and January meal fell $0.20 to $276.70.

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