Soybeans up solidly on good demand


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Soybeans up solidly on good demand

Soybeans were higher on commercial and technical buying, pushing the November contract to a new high for the move. Unknown destinations bought 154,400 tons of 2020/21 U.S. beans, with the possibility of more sales being announced this week. There are rumors China is in the market, with the Mid-Autumn Festival wrapping up this week. Soybeans are also monitoring planting conditions in South America, especially dry conditions in parts of Brazil, delaying activity. That would push back harvest and could lead to increased reliance on U.S. beans by China into early 2021, when Brazil usually takes the market back over. Stateside, the trade is watching harvest activity, expecting generally good progress into mid-month. Eastern areas will likely see some delay attached to Hurricane Delta making landfall. Soybean meal and oil were supported by commercial buying. Palm oil futures were higher heading into the U.S. session on concerns about rain and flood damage in Indonesia and Malaysia.

Corn was modestly higher on commercial and technical buying, including December closing at a multi-month high. Corn is also watching planting conditions in South America, with generally dry weather expected in some key growing areas. Widespread corn planting is just getting underway in Argentina and the planting of Brazil’s second crop won’t start until soybeans are harvested. U.S. harvest conditions mostly look good, with a new production estimate out Friday. The derecho damage from this summer is factored in, so the question is just how much of a dent has drought made in yields. Anecdotal results have varied widely. The U.S. Energy Information Administration’s weekly ethanol production and supply numbers are out Wednesday. Ethanol futures were steady to firm. The Renewable Fuels Association says ethanol exports during August were 100.7 million tons, the highest since March, with DDGS exports at 1.02 million tons, 6% less than in July.

The wheat complex was higher on commercial and technical buying. Chicago and Kansas City spot prices hit new highs as dry weather is an issue during winter wheat planting in the U.S. Plains and Black Sea region. Ukraine has recently received at least some rainfall, while large portions of Russia are seeing persistent drought conditions. IKAR has Russia’s current wheat crop at 83 million tons, more than what the USDA is currently anticipating. New USDA supply and demand estimates are also out Friday, with wheat expected to focus on the global balance sheet, including production numbers. Hurricane Delta should help recharge soil moisture in some soft red winter growing areas. DTN says Tunisia is tendering for 67,000 tons of wheat.

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