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Another higher finish for soybeans

Soybeans were higher on commercial and technical buying, posting solid weekly gains. There was more support from global vegetable oils, with the recent strength in palm oil, soybean oil, and canola a big factor for beans. The USDA’s next set of supply and demand numbers is out May 12th. The near-term soybean supply remains tight and domestic demand continues to be solid, even as export demand softens, for now. Even as Brazil’s harvest moves towards the finish, their FOB prices have turned higher because of strong demand from China. Soybean meal was mostly lower, adjusting spreads, and bean oil was supported by commercial demand, tied to that strength in vegetable oils. There was talk during the session, but no confirmation, about a work stoppage at a major port in Argentina. Argentina is the leading exporter of soybean products.

Corn was mostly lower on spread trade and profit taking, but finished the week higher, with new crop outgaining old crop. The trade is watching U.S. planting conditions, with near-term rains in some areas, along with mostly cooler temperatures, which could be an issue for planting activity and the early stages of development. That strength in new crop corn is tied to traders trying to buy some acreage after the lower-than-expected estimate in the prospective plantings report. The domestic cash basis continues to be strong because of tight supplies and good demand, but a move to $6 in parts of the Midwest did spark some farmer selling. Most forecasts have more dry weather in parts of Brazil, potentially stressing their second crop. That’s the largest of their three crops and the source of most of their exports. Ethanol futures were steady.

The wheat complex was mixed, with Kansas City posting the strongest week to week gains. Winter wheat development conditions are mixed and the northern Plains is expected to see a return to a drier pattern in the coming week. The USDA’s weekly crop progress and condition numbers are out Monday afternoon. There are also concerns about conditions in parts of Europe following a cold snap in some areas, along with drier than normal weather in parts of the E.U. Parts of Australia will need to receive more precipitation ahead of widespread winter wheat planting. DTN says Indonesia bought 120,000 tons of wheat from the Black Sea region, come combination of Russia and Ukraine, and that the Philippines passed on offers for two tenders, one for 380,000 tons of feed or milling wheat and 165,000 tons of feed wheat.

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