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Corn, soybeans, wheat down ahead of USDA reports

Soybeans were modestly lower on profit taking and technical selling. China has rolled back some tariffs, but the list does not include U.S. beans or soybean products. It also doesn’t include U.S. pork, or a lot of ag goods for that matter, aside from a few feed components. China has recently agreed to buy soybean meal from Argentina. Trade talks will resume at an unspecified date in August. U.S. crop weather looks non-threatening, while parts of Brazil are dry during the early stages of planting. CONAB has Brazil’s soybean crop at 115.03 million tons, down slightly from the previous projection, with exports unchanged at 70 million tons. The USDA is expected to lower its U.S. production and yield numbers at least slightly Thursday, while making minimal changes to the global numbers. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was modestly lower on profit taking and technical selling. Corn is also watching late U.S. crop development weather and getting ready for the supply, demand, and production report out Thursday at Noon Eastern/11 Central. On average, analysts expect lower production and yield numbers, but things haven’t always matched up to expectations this growing season, with the USDA throwing the occasional curveball over the past few months. Ethanol futures were mostly firm. The U.S. Energy Information Administration says ethanol production last week averaged 1.023 million barrels a day, up 10,000 on the week, while stocks dropped 1.302 million barrels to 22.499 million. CONAB pegs Brazil’s corn crop at 99.984 million tons with exports of 35 million, both up slightly from prior guesses. Brazil, Argentina, and Ukraine have become staunch export competitors over the past few months.

The wheat complex was modestly lower on profit taking and technical selling. The U.S. spring wheat harvest is slow because of rain in the northern U.S. Plains, but some wheat growing areas of Argentina and Australia are mostly too dry. However, those factors will largely be canceled out by big crops from the Black Sea region and the European Union. In any event, the USDA is expected to project a record world supply on Thursday. DTN says a South Korean flour mill rejected offers on a tender for 26,000 tons of milling wheat, citing price. The USDA’s weekly export sales report is out Thursday morning at 8:30 Eastern/7:30 Central.

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