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Wheat sees mixed finish as soybeans, corn droop

Soybeans were lower on profit taking and technical selling. Beans saw a correction, even with the persistent planting delays in the Midwest and Plains. Just over half of the U.S. soybean crop is planted, slightly ahead of average, and that better-than-expected week-to-week progress was a part of Tuesday’s decline. The big question for beans in the U.S. is if the corn planting delays will lead some producers to switch to soybeans. In South America, the trade is keeping close watch on the historic flooding in Brazil’s state of Rio Grade do Sul that has delayed the harvest, damaged crops, and caused the loss of human life. It has also disrupted grain transportation and soybean crush activities. There was talk, but no confirmation during the session, of China buying U.S. soybeans. Soybean meal was mixed on bear spreading. Soybean oil was down on profit taking and losses in palm and crude oils.

Corn was modestly lower on profit taking and technical selling. 70% of corn is planted, a little bit behind the normal pace, but still ahead of what some were anticipating, with more rain in the forecast for the Corn Belt into the end of the month. That includes heavy rainfall and the potential for severe storms, which could push a significant amount of planting activity past the ideal window, potentially lowering yield. Harvest is ongoing in Argentina, while warm, dry conditions continue to be an issue for second crop corn development in central and southern Brazil. The U.S. Energy Information Administration’s weekly production and stocks numbers are Wednesday. Ahead of the open, Mexico bought 113,050 tons of U.S. corn, 56,525 tons for 2023/24 and 56,525 for 2024/25, and Spain purchased 110,000 tons of 2023/24 U.S. corn. The recent pop in demand by Mexico could be tied to increasing drought conditions in some areas. Astarta says Ukraine has completed corn planting, with acreage dropping nearly 70% on the year.

The wheat complex was mixed, mostly higher. Chicago and Kansas City had up and down days, but closed higher, supported by U.S. and world weather concerns. Parts of the central and southern U.S. Plains, Black Sea region, and Australia remain dry, while portions of western Europe are too wet. Some U.S. soft red winter growing areas are on the verge of excessively wet conditions as well. The impact of dry weather in Russia and Ukraine has also been exacerbated by recent widespread frosts. Russia’s IKAR lowered its outlook to 83.5 million tons and cut exports to 45 million, down 2.5 million and 2 million tons, respectively, from previous projections. Minneapolis was mixed, consolidating, while watching spring wheat planting and early development in the northern U.S. Plains and Canada. France’s AgriMer says 64% of winter wheat is rated good to excellent, steady with a week ago. Russia’s Interfax says grain shipments since the start of the month are 3.4 million tons, down 18% on the year.

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