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Another down day for grains and oilseeds

Soybeans were lower on commercial and speculative selling, with November and January settling below $10. Traders are watching the weather, which generally looks good, and getting ready for Thursday’s USDA numbers. Analysts expect increases for production, yield, and ending stocks figures. Still, the trade’s wary about the potential for an early frost. Soybean meal was mostly lower, September was the exception, and soybean oil was down modestly. Unknown destinations bought 120,000 tons of 2014/15 U.S. soybeans. CONAB now sees Brazil’s old crop soybean production at 86.1 million tons. Allendale states Brazil’s new crop could top 95 million tons due to increased acreage.

Corn was lower on commercial and speculative selling. Corn’s also getting ready for the upcoming USDA reports, which should be bearish, while watching weather. Conditions look good, but there is a chance for an early frost later this week. Ethanol futures were lower. CONAB projects Brazilian corn production at 79.9 million tons. AgriVisor adds China could see an even larger than expected reduction in domestic corn production due to heavy rainfall during late development.

The wheat complex was lower on commercial and speculative selling, in addition to the higher dollar. Thursday’s USDA numbers should also be bearish for wheat. The big negative factor for the complex continues to be the large available world supply, which should just be reinforced by the Ag Department. Australia’s ABARE now sees wheat production at 24.4 million tons, with the potential for the crop to fall below 24 million. According to Australia’s Bureau of Meteorology, there’s a 50% chance for an El Nino pattern to develop. Israel bought 50,000 tons of feed wheat.