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Soybeans, corn down ahead of USDA numbers

Soybeans were modestly lower on commercial and technical selling. The trade was watching weather in South America, expecting record production. The Buenos Aires Grain Exchange projects 2017 soybean production in Argentina at 56.5 million tons and Brazil’s Agroconsult sees that nation’s crop at 113.3 million tons after a crop tour. The International Grains Council has 2017/18 global soybean production at 345 million tons, compared to the 2016/17 projection of 341 million. Friday’s USDA numbers should show strong demand and a year to year increase in planted acreage. The trade shrugged off the bullish weekly export numbers and the sale of 165,000 tons of new crop U.S. beans to China. Soybean meal and oil were lower, following beans.

Corn was weak on commercial and technical selling. Corn was also watching weather in South America and getting ready for Friday’s USDA reports, out at Noon Eastern/11 AM Central. The Buenos Aires Grain Exchange has Argentina’s corn harvest at 11% complete. The trade expects solid demand against a relatively slight year to year decrease in acreage. Ethanol futures were higher. The International Grains Council now sees 2016/17 corn production at 1.053 billion tons with 2017/18 at 1.024 billion.

The wheat complex was mostly modestly lower on commercial and technical selling. The supply side of the market is bearish and recent rain in the Plains should help winter wheat. U.S. wheat acreage could be the smallest in about a hundred years. May Minneapolis was up fractionally on commercial buying. The International Grains Council expects 2017/18 world wheat production to be 735 million tons, compared to 754 million in 2016/17. Jordan bought 50,000 tons of optional origin hard milling wheat.

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