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Harvest pressure sends soybeans, corn lower

Soybeans were lower on fund and technical selling. The trade’s expecting good harvest progress ahead of new rain delays in parts of the Midwest and Plains. China bought 198,000 tons of 2017/18 U.S. beans Friday, the second day in a row with a big sale to the world’s top buyer. Soybean meal was lower and bean oil was higher, adjusting product spreads. The Rosario Grain Exchange says scattered soybean planting is underway in Argentina. Overall, progress in South America has been impeded by weather, too wet in some areas, too dry in others. New USDA supply, demand, and production numbers are out November 9th.

Corn was lower on fund and technical selling. Corn was also watching the weather and expecting generally good harvest progress in many areas. Unknown destinations and Spain both bought 2017/18 U.S. corn, 125,000 tons and 120,000 tons, respectively. Ethanol futures were mixed, mostly higher. According to the Rosario Grain Exchange, corn acreage in Argentina will be lower than initial estimates. Allendale expects a year to year increase because of Buenos Aires’ elimination of export controls and the 20% export tariff. Brazil’s slow soybean planting pace will likely lead to delays in planting their second corn crop, the larger of their two crops. The USDA’s attaché in Japan expects 2017/18 corn imports to be 15.2 million tons. Japan is a big buyer of U.S. corn.

The wheat complex was lower on fund and technical selling. The fundamentals remain bearish, especially on the global supply side, but there’s commercial interest at these prices levels, limiting losses. The trade was expecting generally good week to week winter planting progress. A big unknown about this year’s winter crop is the actual acreage total. Egypt bought 230,000 tons of wheat from Russia. The Rosario Grain Exchange says there are some reports of fusarium and stem rust on Argentina’s developing wheat crop. The USDA’s attaché in Australia lowered its 2017/18 wheat production estimate to 20 million tons, citing weather issues, compared to the 2016/17 total of 35 million tons.

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