Soybeans hit new one week highs on technical buying, short covering and spillover from the outside markets. Demand continues to look strong with China buying another 120,000 tons of new crop U.S. ahead of the open. China’s Ministry of Commerce projects August soybean imports at 4.558 million tons, down 8% from July but up 46% from August 2009, while September imports are pegged at 4.34 million tons. Also, there are continued concerns about yield impact due to dry conditions in the Southern and Eastern Midwest and sudden death syndrome in Illinois, Indiana and Iowa. Soybean meal and oil were higher on spillover from soybeans.

Corn was higher on short covering, technical buying and outside market direction. Unknown destinations picked up 180,000 tons of new crop U.S. corn and in general, demand prospects look good on continued concerns about the impact of Russia’s drought on the global feed market. Also, corn’s keeping very close eye on yield numbers from early harvest results. Still, contracts did close below the highs of the day on pre-weekend position squaring. Ethanol futures were higher.

The wheat complex was higher on technical buying, short covering and spillover from the outside markets. Russian Prime Minister Vladimir Putin says grain stocks are adequate, which traders took with a big grain of salt, but export restrictions probably won’t be lifted until the end of the year. Also, Russia’s winter planting is about half what it was this time last year due to continued drought and USDA’s attaché sees the spring/summer grain crop at 41 million tons, below USDA’s most recent estimate. European wheat was higher on a record week for E.U. soft wheat export licenses; November Paris was up 2% and November London gained 2.7%. Turkey’s Statistics Institute projects their 2010 grain crop at 32.4 million tons, down 3.4% from 2009. A private Israeli purchaser bought 20,000 tons of U.S. feed wheat.