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Soybeans higher on Friday, while wheat moved lower

Soybeans rebound in the last three days of the week erased the significant drop that took place on Tuesday.  Crush incentives for soybeans has been extremely supportive and that doesn’t appear to be changing anytime soon.  Soybeans also found support in stronger soybean meal on Friday.  Looking ahead to next week, the USDA will likely keep its estimates for ending stocks for U.S. soybeans near unchanged in the upcoming Supply and Demand report. Argentina’s soybean crop continues to struggle while Brazil’s harvesting a record crop.

Corn closed mixed, mostly higher on Friday.  While exports remain disappointing, they’re down 42% from this time a year ago, corn does appear a little more attractive.  The deterioration of Argentina’s corn crop continues, but the weather has been favorable for the planting of Brazil’s second-crop corn. 

The wheat complex took a tumble Friday, pressured by improved chances of precipitation in the southwestern Plains in the coming weeks.  Wheat supplies are at the lowest levels in more than a decade and smaller production is expected this year in places like Ukraine, Russia, Australia, and India.  In the US Hard Red Winter wheat is still being hit by drought, while Soft Red Winter wheat is much better as more precipitation is expected.  Some of the fundamentals make it difficult to explain the decline in prices. 

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