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Wheat, soybeans gain more ground

Soybeans were higher on commercial and technical buying. Beans again followed the lead of world vegetable oils, which are being driven by fuel and food demand. Soybean oil was up on that global vegetable strength, with canola and palm oil higher, while bean meal was mostly firm on spread adjustments. The USDA says 73% of U.S. soybeans are harvested, compared to 60% last week and the five-year average of 70%. U.S. soybeans continue to hold a price advantage over competing nations. Weekly export inspections continue to trail last marketing year, due to relatively slower demand from China and the issues earlier this year with shipping issues out of the Gulf. The leading destinations were China and Mexico. There’s been talk, but no announcement, of China buying U.S. beans recently. Beans are also watching planting weather in South America.

Corn was mixed, mostly firm. Corn consolidated, keeping an eye on harvest delays in parts of the Midwest after heavy weekend rainfall and storm damage in some areas. As of Sunday, 66% of U.S. corn is harvested, compared to 52% a week ago and 53% on average. The trade is also monitoring planting conditions in Argentina and Brazil. Parts of both nations received rainfall over the weekend, but longer-term outlooks have drier weather in southern Brazil and Argentina, consistent with a La Nina pattern. Export inspections were down on the week and the year, with Mexico and Japan topping the list. China did make an appearance in the inspections report but hasn’t made a significant purchase of U.S. corn in months. Ethanol futures were unchanged.

The wheat complex was higher on commercial and technical buying. Minneapolis established another high on fundamental support, while Chicago and Kansas City were up, watching winter wheat planting activity. According to the USDA, 80% of U.S. winter wheat is planted, matching the normal pace, and 55% has emerged, compared to 59% on average, with 46% of the crop called good to excellent, compared to 41% in the first rating a year ago. Long-term weather outlooks for the southern U.S. Plains are generally dry, in-line with a La Nina pattern. The USDA’s new supply, demand, and production numbers are out November 9th. Paris milling wheat was higher ahead of the U.S. session. SovEcon says Russia’s wheat prices were up sharply again last week, with the export tariff likely hitting $70 per ton as soon as the end of the month. 2021/22 export inspections remain behind 2020/21. The main destinations for the week were Taiwan and Japan. DTN says Tunisia bought 100,000 tons of soft wheat.

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