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Corn, soybeans lower, expecting rain

Soybeans were lower on commercial and technical selling. Many forecasts have at least some rain in parts of the Midwest and Plains over the next week, and there is a long way to go until the crop is made. The trade was also expecting solid week to week planting progress. As of Sunday, the USDA says 92% of soybeans are planted, compared to the five year average of 87%, and 77% have emerged, compared to 73% on average. In the first rating of the season, 66% of U.S. beans are in good to excellent condition, 8% less than this time last year. Soybean meal and oil followed beans lower.

Corn was lower on commercial and technical selling. Corn’s also watching the weather and this week’s expected rainfall should lessen possible heat stress, at least in parts of the region. Temperatures are generally expected to cool down as the week goes on and it is pretty early in the season. The USDA says the U.S. corn crop is officially planted, but there’s a lot of uncertainty about how many acres that actually will end up being. 94% of U.S. corn has emerged, matching the usual pace, and 67% of the crop is rated good to excellent, down 1% on the week and 8% less than a year ago. The USDA reported the sale of 130,000 tons of 2016/17 U.S. corn to unknown destinations; it was originally announced as a sale of soybeans. Ethanol futures were lower.

The wheat complex was lower on commercial and technical selling. Rainfall will delay some winter harvest activity, but should help some of the later developing winter crop and spring wheat. World conditions generally look good. For winter wheat, 92% of the crop has headed, compared to 91% typically this time of year, and 17% is harvested, compared to 15% on average, with 50% of the crop rated good to excellent, up 1%. For spring wheat, 95% has emerged, compared to the five year average of 92%, and 45% of the crop is called good to excellent, down 10% from a week ago and 34% less than a year ago. Saudi Arabia bought 805,000 tons of optional origin wheat and Egypt purchased a total of 360,000 tons of wheat, 240,000 tons from Russia and 120,000 tons from Romania. Israel is tendering for 30,000 tons of feed wheat.

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