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Weather, outside markets push soybeans, corn lower

Futures Markets copy

Soybeans were sharply lower on commercial and speculative selling. Commodities and the outside markets were all absorbing the big-sell off in China’s stock market Sunday into Monday. Near term weather conditions look generally non-threatening around most of the Midwest. According to the USDA, as of Sunday, 71% of soybeans are blooming, compared to the five year average of 72%, and 34% are at the pod setting stage, compared to 31% on average. 62% of soybeans are rated good to excellent, unchanged, but with 1% moving from good to excellent. Soybean meal and oil were lower on the same factors as soybeans.

Corn was sharply lower on commercial and speculative selling. Corn was also watching the weather and the outside markets. Grains and oilseeds are technically oversold, but it was hard for contracts to get any real traction in the face of the broader market bearishness. The USDA reports 78% of corn is silking, compared to 77% on average, and 14% has reached the dough making stage, compared to 17%. 70% of U.S. corn is called good to excellent, up 1%. Ethanol futures were lower.

The wheat complex was lower on commercial and speculative selling. The trade was expecting good winter wheat harvest progress in the weekly crop update. Also, spring wheat was expected to be in good condition, but some parts of the growing region could use some rain. The global fundamentals remain bearish with a large available supply and slow demand for U.S. wheat, which is at a premium to most competing origins. For winter wheat, 85% is harvested, compared to 80% on average. For spring wheat, 2% is harvested, compared to 5% on average, and 71% is rated good to excellent, 1% above a week ago.

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