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Soybeans and wheat find support

Soybeans were able to finish the day higher despite a Weekly Export Sales report that was nothing to write home about.  There was some definite support from broader markets.  Soybean oil was pushed higher as palm oil hit its highest level in several months.  Soybean meal was higher.  Soybean harvest in Brazil’s central and northern regions continues to battle rain, but is making some progress, and yields have been good.  Conditions in Argentina, however, continue to decline as the Buenos Aires Grain exchange rated just 2% of the country’s crop as good to excellent. 

Corn ended the day mixed.  Nearby contracts were lower as export demand continues to pressure the market.  And corn is on pace for another weed in the red.  Shipments are down more than 40% on the year.  U.S. corn is getting more competitive with Brazil, but an actual improvement in sales has yet to surface.  Planting of Brazil’s second crop corn continues to make progress, however, the drought continues to plague Argentina.  And the Grain Exchange dropped the good to excellent rating for the crop from 9% to 6%.

The wheat complex was higher, supported by the gains in French wheat.  The latest drought monitor showed modest reductions to the drought area in parts of the central and western Plains, but extreme and exceptional drought continues to plague much of the area from Nebraska to Texas.  U.S. wheat prices are at levels that should spark some purchases, but buyers have been relatively quiet.  The lack of demand for wheat has been largely disappointing.  But it isn’t an issue that is unique to the U.S., European wheat prices are struggling to find support as cheaper supplies coming out of Russia are getting much of the business this winter. 

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