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Corn, soybeans pressured by bearish weather

Soybeans were pressured by bearish weather forecasts with scattered rains and less warm temperatures in the coming week or more. Monday marked the fifth day in a row of no export sales announcement from USDA but with soybean prices cheaper for US beans than in Brazil, future business should lead more to toward the U.S. The price outlook for new crop soybeans is neutral with bullish possibilities if China’s demand turns out to be stronger than expectations. Seventy-percent of U.S. beans are rated good to excellent, 2% lower than a week ago, with 96% of the crop planted, compared to the five-year average of 93%. Nearly 90% of soybeans have emerged, compared to 85% on average, and 5% are blooming, on pace with the usual rate.

Corn is lower. With favorable weather in the forecast and a return of coronavirus concerns after the U.S. infection count spiked higher the past several days.  Weather forecasts show moderate to heavy rains for the central Midwest and around the Great Lakes for the next five days. Temperatures are expected to stay good for corn development. Yield reports from the Brazilian corn harvest with Mato Grosso are said to be record large and are also pressuring corn. The next few weeks have good rain coverage in the forecast for the dry Eastern Corn Belt. As of Sunday, 72% of U.S. corn was in good to excellent shape, up 1% on the week, with 2% of the crop silking, matching the normal pace.

Wheat ended up higher. While winter wheat prices had modest gains Monday, September Minneapolis wheat fell 6 1/2 cents, pressured by rain in the forecast for the northwestern U.S. Plains. Kansas and Oklahoma got rain over the weekend. The seven-day forecast is mostly dry for the southwestern plains, good for continued harvest. Just over half of winter wheat is in good to excellent condition, 2% above last week, with 96% of the crop headed, compared to 97% typically in mid to late June. Nearly 30% is harvested, compared to 26% on average. Three-quarters of spring wheat is rated good to excellent, a drop of 6%, with 12% of the crop headed, much slower than normal.

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