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Soybeans mostly firm, corn up on commercial activity

Futures Markets copy

Soybeans were mostly modestly higher on commercial spread adjustments and technical activity. Demand is strong, but USDA is expecting record U.S. production and bigger South American crops. On the flipside, the USDA’s expecting record demand and there’s a long way to go until South America’s crop is planted, much less harvested. In any event, January through September 2017 contracts closed above $10. China bought 516,000 tons of 2016/17 U.S. soybeans. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. According to Allendale, part of Monday’s palm oil driven rally was a lower production estimate from Malaysia.

Corn was modestly higher on commercial and technical buying, settling near the middle of the day’s range. More than 60% of the U.S. crop is harvested and after some mid-week rain, conditions for most areas generally look good. The USDA is also expecting record U.S. corn production to go along with solid demand. Corn’s also watching planting conditions and acreage totals in Argentina and Brazil. Ethanol futures were lower. European Union crop monitoring service MARS lowered its corn yield estimate slightly.

The wheat complex was mixed with Chicago and Kansas City up and Minneapolis down. In the first rating of the season, 59% of winter wheat’s in good to excellent shape. It is very early in the season though and there’s more than enough wheat available, domestically and globally. MARS, the EU’s crop agency, reduced its 2016 soft wheat yield estimate. In sell-buy-sell activity, Japan is tendering for 120,000 tons of feed wheat. Persistent wet weather is delaying spring wheat harvest activity in western Canada.

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