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Wheat closes higher while corn and soybeans are flat

Soybeans finished the trading session steady to weak. There are high expectations for phase one of the new trade agreement with China, which is be signed Wednesday, but confirmation of what’s in the agreement has not been coming. The agreement should be bullish for U.S. soybean prices and modestly bullish for grains overall, but DTN says noncommercial traders have been restrained buyers so far. Also, Brazil and Argentina remain on track for large soybean crops in 2020. More rain is expected in the main crop areas of Brazil and Argentina the next seven days. The USDA said Tuesday that 4.4 million bushels of U.S. soybeans were sold to unknown destinations to be delivered this marketing year.

Corn closed fractionally lower Tuesday. Trade volume was light while traders wait for the new U.S. and China trade deal to be signed. Most attention about the deal has been on soybeans and pork, but corn and wheat will benefit to a lesser extent. DTN’s seven-day forecast has moderate precipitation across the central U.S. from Wednesday to Saturday and heavier amounts in the eastern U.S. The seven-day South America forecasts are generally favorable for Brazil and Argentina.

There was strength Tuesday especially in winter wheat as Kansas City and Chicago closed higher. Contracts were buoyed by lower supplies of soft red winter wheat and by possible bullish effects from the U.S. and China trade agreement. DTN’s seven-day forecast includes broad coverage of moderate to heavy precipitation over soft red winter wheat areas. Wheat exports are doing better, but some wheat business from Egypt went to Russia and Romania on Tuesday because of price issues. Any encouragement about the possibility of higher wheat prices is tempered by the fact that there’s a large global supply.

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