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Soybeans, corn supported by renewed weather concerns

Soybeans were higher on commercial and technical buying. The USDA announced the sale of 1.3 million tons of new crop U.S. beans to China, which is likely connected to Thursday’s announcement in Des Moines, Iowa. Near term forecasts generally look dry, with scattered rain and high heat in western portions of the region. Soybean meal and oil followed beans higher. Allendale says a truck strike at a port in Brazil will likely lead to some export cancellations. The Buenos Aires Grain Exchange reports Argentina’s soybean harvest is 99% complete, with the remaining unharvested areas generally too wet to operate in and production estimated at 57.1 million tons. The 2017 annual total is expected to be 57.5 million tons, up 2.7% on the year, despite a decrease in acreage.

Corn was higher on commercial and technical buying. Corn’s also watching the weather and those forecasts for hot temperatures and scattered precipitation in parts of the Plains and Midwest. Recent rainfall was needed in some areas, but caused flooding in others. Dry parts of Iowa and Nebraska did see some much needed rain. Ethanol futures were higher. Harvest progress in Argentina was mixed, according to the Buenos Aires Grain Exchange, depending on rainfall. 55.5% of the crop is harvested, with the Exchange maintaining a production estimate of 39 million tons.

The wheat complex was mixed with Chicago and Kansas City down modestly on harvest and supply pressure. Minneapolis was higher with spring wheat growing areas expected to see another round of very hot, very dry conditions and an expanding drought in the Dakotas and Montana. DTN says Tunisia bought 42,000 tons of optional origin milling wheat. The Buenos Aires Grain Exchange reports wheat planting was also disrupted by the weather, with 79.1% of the crop in the ground, slightly behind last year’s pace. The Exchange has lowered its planted area estimate because of recent heavy rainfall and flooding.

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