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Soybeans, corn down, expecting good harvest progress

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Soybeans were lower on fund and technical selling. The trade’s expecting good harvest progress thanks to warm, dry weather across most of the region. A record crop is pretty much locked in, but beans are also looking at very strong, if not record, demand. Soybean meal and oil were lower, following the lead of beans. Soybeans are continuing to watch the weather in South America, hoping improved rainfall will help improve planting progress.

Corn was lower on fund and technical selling. Unknown bought 101,600 tons of 2014/15 U.S. corn and there is solid commercial demand with prices at a good relative value. Still, the trade is expecting a record crop and solid near term harvest progress. Ethanol futures were lower. South America’s corn planting progress is also slower than average, and while the delays in planting beans may not have much of an impact on bean acreage, it could mean a smaller second corn crop.

The wheat complex was lower on fund and technical selling. The fundamentals remain bearish, with a large global supply and expected record world crop. Better harvest progress for corn and soybeans will lead to improved winter planting. Similar to corn, wheat is at a good relative value, but that aforementioned world situation is keeping fundamentals bearish. What export demand there is, is pretty routine; Taiwan is tendering for 41,300 tons of U.S. milling wheat.

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