Corn futures closed 2-3 cents higher today in moderate trade volume. Some stability the past two sessions and support from wheat futures seemed to underpin corn today. Funds were buyers of 2,000 corn contracts mid-day but are estimated short 60,000 contracts. A lack of concern over nearby weather forecasts and very good crop conditions hangs over the marketplace (along with the ongoing trade saga with China and NAFTA issues.) A high pressure ridge is still forecast for the nation’s mid-section in early July but ample soil moisture is expected to keep it from hanging around for an extended period. Some parts of KS/MO remain dry but many areas in the Midwest won’t mind some drier weather. Wheat futures closed 6-7 cents higher as the market pays a bit more attention to Black Sea region weather issues (expecting some rain but forecasts remain on the dry side.) Weekly export corn sales were disappointing at 6.5 mln. bu. but YTD commitments of 2.220 bln. bu. are running ahead of last year’s 2.171 bln. bu. Buyers of note were Japan and Mexico with quite a bit of unknown destination sales moving to known destinations.
Soybeans closed 9 cents lower but off session lows. Funds were sellers of 4,000 contracts mid-day and hold an estimated short position of 50,000 contracts. Everything seems to revolve around China and export progress/potential with good weather also in the mix. Weekly export sales this morning were 11.1 mln. bu. with the Netherlands the main buyer. YTD commitments at 2.074 bln. bu. vs. 2.170 bln. bu. last year. China cancelled 66 tmt of purchase in old crop and still has roughly 50 mln. bu. of old crop beans to load out (more when considering unknown destinations) and the trade is concerned over additional cancellations. China is working to lift phytosanitary restrictions on feedstuffs that can take the place of soymeal so it appears they are at least doing the legwork to replace soybeans to some degree if needed. Brazil FOB offers late summer/fall have shot up this week and make U.S. offerings competitive.
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