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Soybeans, corn, wheat see good gains
Soybeans were higher on short covering and technical buying. A new tariff battle against China is on, but Beijing’s retaliation doesn’t include soybeans. Mexico does buy U.S. soybeans and soybean products and Canada is a solid soybean meal customer. Soybean meal futures were up on that easing of tariff talk, while bean oil was lower on the prospect of continued U.S. canola oil imports from Canada. There’s rain in the forecast for Argentina, easing some concerns about yield loss, and a drier pattern on tap for parts of Brazil, which should allow the harvest to pick up steam. The USDA’s updated supply, demand, and production numbers are out on the 11th, while CONAB’s new outlook for Brazil is set for the 13th.
Corn was higher on short covering and technical buying. Corn is also monitoring trade negotiations and weather in South America. The month long pause in new tariffs on Mexico should keep the corn export pipeline open and while Canada doesn’t buy a lot of U.S. corn, it is the leading purchaser of U.S. ethanol. U.S. corn imports by China have been almost non-existent this marketing year. Rain in Argentina could help late planted corn and a faster soybean harvest pace in Brazil would help increase the planting pace for second crop corn. South Korea purchased 132,000 tons of 2024/25 U.S. corn ahead of the open. South Korea is the second biggest buyer of U.S. corn in Asia, after Japan. The U.S. Energy Information Administration’s weekly ethanol production, stocks, and export numbers are out Wednesday.
The wheat complex was higher on short covering and technical buying, along with the lower trade in the dollar index during the session. U.S. winter wheat crop condition ratings are mixed over the past month, with a mixed near-term precipitation outlook and ongoing talk about winterkill. Development weather is also being watched in Europe, India, Russia, and Ukraine. Still, the big determining factor for wheat is conditions when the crop emerges from dormancy. Russia’s exports are slowing down ahead of the official cap on the 15th, while production projections for Australia’s crop are rising and could fill some of that vacuum. Gains in Minneapolis were limited by the likelihood of continued spring wheat and durum imports by the U.S. from Canada.
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