Soybeans were lower on profit taking and technical selling, along with spillover from the outside markets. The dollar was up and the Dow was down sharply, while crude oil closed at its lowest level since early October 2011. Losses in the nearbys were at least somewhat limited by the tight near term supply and overall good demand. Past that –beans are overbought and there has been some rain in the Midwest over the past couple of days. Soybean meal was mostly lower in consolidation trade and bean oil was down sharply on spillover from beans and crude oil. China’s General Administration of Customs reports May soybean imports were 5.28 million tons, up 16% from May 2011, bringing the year to date total to 23.43 million tons, 20.7% more than the first five months of last year. The Administration adds soybean oil imports were 60,331 tons, compared to 112 tons a year ago. Argentina’s Ag Ministry estimates 2011/12 soybean production at 40.3 million tons, down 17.6% on the year due to drought, with 97% of the crop harvested.
Corn was sharply lower on fund and technical selling, in addition to spillover from the outside markets. Nearby contracts had additional pressure from the lower cash basis price for spot corn. That recent rainfall in the Midwest was welcome but won’t be enough for many of the drier areas, and even then, some sections will be back to a hot, dry pattern soon. Weekly export sales and shipments were bearish. Ethanol futures were lower. According to Dow Jones Newswires, China’s Ministry of Commerce is set to drop its anti-dumping probe on U.S. DDG imports. China’s General Administration of Customs states corn imports for May were 116,315 tons, compared to 12,010 tons in May of last year.
The wheat complex was weak on technical selling, the higher dollar, and spillover from corn. Japan bought 108,500 tons of U.S. milling wheat (44,079 tons western white, 43,205 tons hard red winter, and 21,221 tons dark northern spring) and the weekly export numbers were neutral, bullish for sales, bearish for shipments. In any event, wheat’s continuing to watch global growing weather. European wheat was higher on technical buying and Algeria’s purchase of 500,000 to 600,000 tons of optional origin wheat, indicating at least part of that is E.U. origin. Iraq and Libya both tendered for 50,000 tons of optional origin wheat. China’s General Administration of Customs reports wheat imports during May 2012 were 556,603 tons, up sharply from the May 2011 total of 10,308 tons.
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