Soybeans were sharply higher on speculative and commercial buying. Beans continue to watch the weather with generally hot, dry conditions expected over the next ten days. USDA reports 66% of soybeans are blooming as of Sunday, compared 34% last year and 42% for the five year average, 16% are at the pod setting stage, compared to 5% last year and 9% on average, and 34% is rated good to excellent, down 6% from a week ago. Soybean meal and oil were higher Monday. The National Oilseed Processors’ Association reports member firm soybean crop during June was a little larger than expected at 134.156 million bushels.
Corn was sharply higher on fund and commercial buying. The trade continues to watch weather impact, expecting lower production and yield estimates in the coming weeks. According to the USDA, 71% of corn is silking, compared to 28% last year and 36% on average, with 12% at the dough making stage, compared to 3% a year ago and 4% on average, and 31% of the U.S. crop is in good to excellent condition, 9% lower than last week. Ethanol futures were higher. Dow Jones Newswires states the cash corn basis continued to weaken Monday with slower demand where crops are in better shape. Also via Dow Jones, Vietnamese feed mills have reportedly purchased “at least” 300,000 tons of corn from India as a substitute for Australian feed wheat.
The wheat complex was sharply higher on commercial and technical buying, along with spillover from corn and soybeans. Wheat’s watching the world weather with lower estimates recently for the Black Sea region, and concerns about monsoon impact on India’s crop. Also, Monday morning, Japan bought 107,214 tons of 2012/13 U.S. wheat (69,784 tons hard red spring and 37,430 tons soft white). For winter wheat, the Ag Department states 80% is harvested, compared to 64% last year and 65% on average, and for spring wheat, 94% has headed, compared to 54% last year and 77% on average, and 65% of spring wheat is called good to excellent, down 1% from last week. European wheat futures were sharply higher on the crop woes in the U.S., Russia, and Ukraine. Russia’s Ag Ministry estimates wheat production at 45.3 million tons, down nearly 11 million on the year, with export potential around 14 million. According to Ukraine’s Ag Ministry, year to date wheat production is 7.4 million tons with yield down on the year. Around 49% of Ukraine’s total grain area was harvested as of July 13.