Soybeans were modestly lower on profit taking, technical selling and a lack of fresh news. Outside markets were negative as well with dollar higher while the Dow Jones Industrial Average and crude oil were lower. Also, even with some harvest delays and a scarcity of near term supplies, the trade is concentrating on this year’s expected record crop. Commercial demand remains solid but overall buying interest was light with some traders waiting for updated quarterly stocks from the USDA out Wednesday morning. November continued to bounce off support while failing to break resistance. Soybean oil was higher and meal was lower on product spread trade. Losses in meal were limited by the tight nearby supplies. Brazilian ag consultants Celeres report that 2009/10 soybean sales were unchanged on the week at 14% with some crushers temporarily closed due to a lack of supply.

Corn was higher on spreading, technical buying and short covering. There wasn’t much fresh news and gains were limited by spillover pressure from soybeans and the outside markets. However, corn development remains behind normal with 37% of the crop mature, compared to 72% for the five year average. The current weather’s a two sided issue right now: it’s too late to do much damage in some areas, but it will limit yields in others. Either way, the trade is greatly anticipating that final USDA average yield. Ethanol futures were higher.

The wheat complex was lower on profit taking and the higher dollar. The higher dollar makes U.S. goods more expensive on the world market, further limiting export competition. Also, Egypt bypassed U.S. wheat, picking up 150,000 tons from Russia, the tender did include U.S. wheat, and Japan, which usually buys U.S. wheat, won’t be issuing a tender this week. December Chicago hit a new contract low during the session. Losses in Minneapolis were limited by reports from North Dakota showing hard red spring with below average protein content of 13.5%. The USDA’s quarterly stocks report should show an increase in supply. 2009 wheat production is expected to be around 2.196 billion bushels with winter wheat at 1.542 billion bushels (hard red at 917 million, soft red at 413 million and white at 219 million) and non-durum spring wheat at 552 million bushels. Both reports are out Wednesday at 7:30 AM Central. European wheat was lower with losses limited by short covering; November Paris was down .2% and November London was .7% lower. Ukraine’s Agrarian Confederation reports that wheat exports from July 1 to September 29 were 3.4 million tons, 70% of that feed grade.