Soybeans were modestly lower on technical and fund selling, along with spillover from the outside markets. The dollar was higher while the Dow Jones Industrial Average and crude oil were lower. Traders are continuing to look at the weather, with 6-to-10 day forecasts generally warmer and drier than recent conditions. Losses were limited by the wet ground across much of the Midwest and Delta along with uncertainties over those longer term weather forecasts. The Buenos Aires Grain Exchange reports that around 5% of Argentina’s 2009/10 soybean crop has been planted, but the Exchange notes that germination has generally been slow due to cooler than average temperatures and the poor quality of seed leftover from last year. The USDA’s weekly export sales report is due out Thursday at 7:30 AM Central. Soybeans are pegged at 400,000 to 750,000 tons, meal is seen at 150,000 to 250,000 and oil is placed at 10,000 to 25,000 tons.

Corn was lower on fund and technical selling, in addition to spillover from beans and the outside markets. Corn is also keeping close watch on weather conditions during the first week of November. Still, losses were limited by wet fields in many sections of the Cornbelt, the high moisture content in what has been harvested and concerns over yield. The Buenos Aires Grain Exchange states that 63% of Argentina’s corn crop is planted, with conditions good in Central areas, but poor in outlying areas due to dry soil. The Exchange adds some farmers in Cordoba, one of the key corn states, are waiting for rainfall to resume activity. Weekly corn exports are expected to be between 300,000 and 800,000 tons.

The wheat complex was lower on technical selling, the lower corn and beans and the higher dollar index. A higher dollar reduces export competition by increasing the price of U.S. goods on the export market. For all intents and purposes, the recent losses can be viewed as a correction from the gains earlier in the month. Still, contracts managed to pull up from the lows of the session thanks to the slow winter planting pace and decent, but not outstanding, demand for hard red spring. India’s federal government has approved the sale of 500,000 tons of wheat from state reserves at higher than current market prices. Cooperative Bulk Handling Ltd. reports that recent rainfall in Western Australia was probably too late to help some of the wheat crop. CBH has total wheat production for that state at 7.7 million to 8.8 million tons. Weekly U.S. wheat sales are estimated at 400,000 to 600,000 tons.