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Soybeans down on China uncertainties

Soybeans were lower on fund and technical selling. The trade continues to wait for signing of phase one of the proposed deal with China. The U.S. side had some positive comments about weekend discussions, but there were reports Monday Beijing was pessimistic about the deal, at least in part because of President Trump’s refusal to roll back tariffs. China was the top weekly destination for soybean export inspections, well ahead of Spain. Beans are also watching U.S. harvest weather. The USDA says 91% of U.S. soybeans are harvested, compared to the five-year average of 95%. South American planting and development conditions are improving, with moderate to heavy rains expected over the next week in some of the drier parts of Argentina and Brazil. Agrural says 67% of Brazil’s soybean crop is harvested, compared to 70% on average. Soybean meal was sharply lower and bean oil was modestly higher on the adjustment of product spreads.

Corn was lower on fund and technical selling. Corn was expecting the USDA to report another mixed week of harvest progress, with better weather in some areas than in others. As of Sunday, 76% of the U.S. corn crop is harvested, compared to 92% on average. Forecasts this week are mostly dry for much of the Midwest. Propane demand remains high in the upper Midwest, tightening supplies and raising prices. Corn is also watching planting and development weather for Argentina and Brazil. Unknown destinations bought 132,000 tons of 2019/20 U.S. corn Monday morning, while weekly inspections were bearish, continuing to reflect the competition from South America and Ukraine. Mexico and Colombia were the top destinations. France’s AgriMer says corn planting is slower than average because of wet weather. Ethanol futures were lower. Sorghum inspections were bullish, with Japan and Mexico the listed destinations. 93% of sorghum is harvested, compared to 87% on average.

The wheat complex was mixed, with Chicago and Kansas City up and Minneapolis down. Dry weather in parts of the southern Plains could have an impact on winter wheat as the crop heads towards dormancy. According to the USDA, 95% of U.S. winter wheat is planted, matching the usual pace, and 83% has emerged, compared to 86% typically this time of year. 52% of winter wheat is in good to excellent condition, down 2% on the week and 5% below a year ago. Export demand is good, but not outstanding, with a lot of competition and a projected record global supply. Weekly inspections were bearish, largely because of the supply issue, but China was the top destination, ahead of Mexico. France’s AgriMer says winter wheat planting is slower than normal because of continued wet conditions. DTN says Tunisia is tendering 92,000 tons each of durum and soft wheat, while Algeria is in the market for 50,000 tons of milling wheat.

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