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Soybeans, corn firm, watching weather

Soybeans were modestly higher on short covering and technical buying. Conditions are good overall, but the trade is watching wet weather in some areas and dry weather in others. Pakistan bought 199.500 tons of new crop U.S. beans. Egypt and Mexico have also increased demand for U.S. beans because of lower prices, but the Chinese tariffs continue to stifle any real enthusiasm connected to the purchases. No new plans for negotiations between the U.S. and China have been announced, but Chinese representatives are scheduled to visit Argentina. USDA’s weekly export sales report is out Thursday at 8:30 Eastern/7:30 Central. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was modestly higher on short covering and technical buying. Corn is also watching the weather, with more rain expected in parts of the upper Midwest and Plains, but only scattered precipitation in drier areas. The USDA’s next production update is out in August. Ethanol futures were lower. The U.S. Energy Information Administration reports ethanol production last week averaged 1.064 million barrels a day, up 31,000 on the week, with stocks of 21.768 million barrels, down 625,000. Corn for ethanol use remains on pace to meet or exceed USDA projections for the current marketing year, which runs through the end of August.

The wheat complex was mixed, with Chicago mostly firm and Kansas City and Minneapolis modestly lower. The winter wheat pits are watching rain in the Midwest and Plains, which will cause some harvest delays and yields continue to be widely variable. Minneapolis is also watching rain, expecting welcome near-term precipitation in parts of the Dakotas and Canadian Prairies. Forecasts have more generally dry conditions in parts of western Europe and Australia. Bahrain is tendering for 25,000 tons of optional origin wheat. Japan has an open tender for more than 50,000 tons of U.S. wheat.

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