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Lack of threatening weather pressures soybeans, corn

Soybeans were lower on fund and technical selling. There was no fresh fundamental news and traders were waiting for the crop progress numbers, along with the acreage update at the end of the month. USDA reports 92% of soybeans are planted, compared to 90% on average, and 83% have emerged, compared to 77% on average, with 73% of the crop rated good to excellent, down 1% from a week ago. Soybean meal and oil were down modestly, following beans. Weekly export inspections and NOPA crush numbers were bullish, but not much of a factor.

Corn was lower on fund and technical selling. Corn is also watching the weather, while starting to get ready for the acreage numbers out on the 30th. At least for now, weather looks benign and pre-report estimates for that report are trickling out slowly. According to USDA, 97% of corn has emerged, compared to 96% on average, and 76% of the crop is in good to excellent condition, up 1% on the week. Ethanol futures were higher. Weekly export inspections were within pre-report estimates.

The wheat complex was lower on fund and technical selling. There’s been more rain in Kansas and Oklahoma, delaying harvest, and leading to more concerns about quality. However, it’s recharging soil moisture and soft red winter remains in comparatively good shape. For the winter crop, 92% has headed, compared to 90% on average, and 16% is harvested, compared to the five year average of 20%, with 30% of the winter crop called good to excellent, unchanged on the week. For spring wheat, 91% has emerged, compared to 90% on average, and 72% of the crop is rated good to excellent, up 1% from last week. According to Reuters, Egypt’s domestic wheat purchases are 3.65 million tons, and Cairo will reportedly stop buying domestic supplies June 20. Also according to Reuters, Australian wheat farmers aren’t selling wheat right now. On one hand, that’s insurance against El Nino, but on the other hand, Australian farmers aren’t taking advantage of global trade fundamentals and may lose export market share in Asia. Lebanon bought 15,000 tons of 11.5% protein wheat from Ukraine.

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