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Export demand supports soybeans

Futures Markets copy

Soybeans were higher on commercial and technical buying. China bought 120,000 tons of 2016/17 U.S. beans, the seventh straight business day with a new sale. Weekly export numbers were neutral with strong sales and slow shipments. Quarterly grain stocks are expected to be up on the year, but there have been September surprises before. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. The International Grains Council raised its 2016/17 world soybean production guess to 329 million tons, while reducing carryover expectations.

Corn was steady to fractionally lower, taking the path of least resistance during an up and down session. Most near term forecasts are for generally good harvest conditions in much of the Midwest. Weekly export numbers were neutral, but cumulative sales are ahead of last year’s pace very early this marketing year. Ethanol futures were lower. The International Grains Council projects 2016/17 world corn production at 1.027 billion tons, down slightly on the month because of reduced expectations for China and the European Union.

The wheat complex was mostly lower with Chicago and Kansas City down modestly and Minneapolis firm. Weekly export numbers were bullish, continuing the hot streak to start the marketing year. There is a lot of wheat available which is expected to be reflected in Friday’s quarterly grain stocks report. Those numbers are out at Noon Eastern/11 AM Central, along with a wheat production update. Japan bought 96,000 tons of U.S. food wheat along with 30,000 tons from Canada. Tunisia purchased 67,000 tons of milling wheat and 42,000 tons of durum, both from optional origins. The International Grains Council sees 2016/17 world wheat production at 747 million tons, up a little bit on the month with increased expectations for Australia, Canada, China, and Kazakhstan.

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