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Weather, demand driving soybean, grain prices

Futures Markets copySoybeans were lower Thursday, pressured by rain in parts of the Midwest the past five days, easing drought concerns for now.  DTN says some of the areas showing either abnormally dry, or in moderate drought on the U.S. Drought Monitor map were helped by Wednesday’s storms, but other areas had wind damage to crops.  The USDA says soybean export sales and shipments combined are neutral, but could be bullish if shipments pick up.

Corn was lower following Wednesday’s rain from northern Illinois to Ohio. There are chances for light rain and cooler temperatures in the Central Plains for the next five days easing recent talk of drought. There is also bullish demand for corn after USDA lowered its estimate of Brazil’s 2015-16 ending corn stocks from 234 million to 171 million bushels.  Corn export sales and shipments are neutral, but Brazil’s tighter supplies are bullish. South Korea bought 5.4 million bushels of U.S. corn, half to be delivered this marketing year, and half the next.

Wheat followed corn to close lower Thursday, but DTN says there are no significant crop concerns of its own.  Combined export sales and shipments of wheat are bullish at this point.  Winter wheat harvest is advancing northward with the hot and dry weather.  Northern spring wheat areas aren’t expecting much rain in the week ahead, but temperatures will be mild and there’s rain expected in the southern Canadian Prairies.

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