Corn closed 2 cents lower in what seemed a quiet trade as today’s range was just 4 cents. Corn torn between following beans higher on weather or wheat lower on lack of supply concerns and fund selling pressure. Additionally, the August S&D report continues to hang over the market’s head whether the projected yield is believed or not. Crop tours point to less optimistic yields than USDA alludes to but the trade is reluctant to bet against USDA. Technically the market is approaching oversold areas and end user pricing may become more prevalent but the market may have to wait for the USDA S&D report in September for further guidance. Weekly export sales were 2.5 mln. bu. for old crop and 26.4 mln. bu. for new crop. 16/17 commitments are 2.223 bln. bu. – right in line with USDA projections. Mexico and Japan the buyers of note regarding 17/18 purchases. NWS 30 and 90 day forecasts do not look especially threatening. September: N temps everywhere with ECB A precip. SON: A temps everywhere, N precip on the corn belt and A precip in the SE U.S.
Soybeans managed to close 8 cents higher today as precipitation amounts in the heart of the corn belt are perceived as disappointing compared to expectations and longer range forecasts are drying out. Trade is on the fence regarding production possibilities as timely rain in August will determine yields. Pro Farmer crop tour starts next week and will carry some weight in the trade. Soybeans are getting close to being technically oversold. Weekly export sales were 16.7 mln. bu. for old crop and 33.0 mln. bu. for new crop. China the main buyer in both crop years. 17/18 export commitments at 14% of USDA projections vs. the 5 year avg. of 35% which is concerning but sales have been improving. U.S. and Brazil offerings comparable for Sept/Oct now vs. being a premium very recently. Brazil bean movement to port has been slowed by lack of producer selling, transportation issues, and a producer who doesn’t need money nor likes the exchange rate. Stories were making the rounds today regarding lack of storage space in Brazil.
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