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Wheat, corn get back on higher trends
Soybeans were mixed. Soybeans consolidated after the big gain on Monday, watching demand signals and U.S. weather. The USDA’s national good to excellent rating improved when most analysts had been expecting a decline and development is ahead of average. The recent weather might have had an impact in some areas, but the trade is taking a wait and see approach for now. While there were no new U.S. export sales announced Tuesday, there was more talk about demand from China. Domestic crush margins remain in positive territory. Soybean meal futures were higher and soybean oil was lower on the adjustment of product spreads.
Corn was higher on fund and technical buying. Corn is watching near-term rainfall chances in some areas ahead of what’s expected to be another hot, dry pattern for parts of the region into August. That could trim some of the top end yield potential for this year’s crop. Corn is also monitoring harvest activity in Argentina and Brazil. The USDA will updated supply, demand, and production numbers are out August 12th and CONAB’s next update for Brazil is set for August 13th. Ahead of that, the U.S. Energy Information Administration’s weekly ethanol numbers are out Wednesday.
The wheat complex was higher on fund and technical buying. Wheat continues to monitor Black Sea exports and global development conditions. Russia’s ongoing war on Ukraine has limited grain movement out of that region, impacting about a third of world wheat trade, along with significant amounts of feed grains and oilseeds. On the weather front, drought has had an impact on U.S. winter wheat and recent conditions have impacted USDA spring wheat crop ratings, with traders also monitoring some combination of planting, development, and harvest in Argentina, Australia, Canada, Europe, Russia, and Ukraine. Stateside, a major spring wheat quality tour is underway in the Plains. SovEcon now has Russia’s wheat crop at 88.3 million tons, down 600,000 from their previous guess due to lower acreage and yield numbers in some areas.
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