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Wheat leads, watching Europe

Soybeans were mostly lower on profit taking. China bought another 110,000 tons of new crop U.S. beans and the near term supply remains tight, supporting September. The Farm Service Agency says prevented planting on beans is around 800,000 acres. Soybean meal was up and bean oil was down on the adjustment of product spreads. The NOPA July member crush was larger than expected and up from June at more than 119.3 million bushels.

Corn was higher on short covering, technical buying, and spillover from wheat. The FSA has prevented planting on corn at more than 1.5 million acres, but that really doesn’t change the outlook. Crop weather looks good with rain in the forecast for the Western Cornbelt, but there was at least some frost reported in the Eastern Cornbelt Friday morning. Ethanol futures were lower.

The wheat complex was higher on fund and commercial buying, with Chicago leading the way. The trade’s watching forecasts for more rain around Europe, potentially further damaging crop quality. The trade’s also keeping an eye on the situation in Ukraine, with tensions flaring at least somewhat Friday. FSA reports prevented planting on wheat is currently at 1.36 million acres.