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Soybeans, Minneapolis wheat post some gains

Soybeans were steady to firm. Contracts rebounded after the recent losses, with support from demand. Weekly export sales numbers are out Thursday morning and while old crop sales should be seasonal low, it should be another solid week for the actual shipments. The current marketing year for soybeans, and corn, is over at the end of this month. Weather continues to look generally good over the near term in most key growing areas with non-threatening temperatures and some rain. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was modestly lower on commercial and technical selling. Contracts broke below key support levels recently and ran into resistance at those prices. Corn’s also watching the weather and expecting conditions to stay generally good for the next week or so. After that, temperatures could turn hot again. A major Midwestern crop tour is scheduled to start next week. Ethanol futures were lower following the weekly U.S. Energy Information Administration numbers. The EIA says ethanol production last week averaged 1.059 million barrels per day, up 47,000 on the week, and stocks were 21.828 million barrels, an increase of 481,000. According to Allendale, Argentina’s corn acreage is expected to be up 5% to 10% in 2017/18, with planting expected to get started in September.

The wheat complex was mixed. Minneapolis was higher, supported by oversold signals and the uncertainties about this year’s spring crop. Acreage abandonment and protein content are two of the big questions, and forecasts for the northern Plains continue to look much drier than normal. Chicago and Kansas City were lower, focused on forecasts for soil moisture recharging rainfall in the southern Plains and eastern Midwest. This year’s winter wheat harvest is either close to over or over in many key U.S. states. Egypt is tendering for 55,000 tons of wheat from Russia, Jordan is in the market for 100,000 tons of milling wheat, and Tunisia is tendering for 92,000 tons of wheat.

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