Soybeans were higher on fund and commercial buying. Demand continues to be strong, with China buying 420,000 tons of U.S. new crop, along with 66,000 tons of optional origin, and some areas of the Midwest do need rain as we head into August. USDA reports 76% of soybeans are blooming, compared to the five year average of 72%, with 38% at the pod setting stage, compared to 31% on average. 71% of soybeans are in good to excellent shape, down 2% on the week. Soybean meal and oil were higher, following the lead of beans. Safras & Mercado projects 2015 Brazilian soybean production at 94.5 million tons.
Corn was higher on fund and technical buying. Corn’s also watching the weather, and while the trade still expects a big crop, they would also like to see rainfall in parts of the region, which would help with development. USDA’s first survey-based production estimate is out in August. According to USDA, 78% of corn is silking, compared to on average, with 17% at the dough making stage, compared to 16% on average. 75% of corn is in good to excellent condition, down 1% from a week ago. Ethanol futures were higher.
The wheat complex was lower on fund and commercial selling. Chicago and Kansas City are watching the tail end of the winter wheat harvest and spring development conditions look good. For the U.S. winter crop, 83% is harvested, compared to 80% on average, while for spring wheat, 93% has headed, matching the five year average, and 70% is rated good to excellent, unchanged from last week. Nigeria bought 101,000 tons of 2014/15 U.S. wheat (61,000 tons hard red winter and 40,000 tons soft red winter). Globally, the trade’s keeping an eye on dry weather in Australia, along with potential production and trade disruptions in the Black Sea region. Turkey purchased 165,000 tons of milling wheat.