Beans Come Back from 3 Day Weekend Trading Higher
Crude Oil Posted Solid Gains
Beans came back from the 3-day weekend trading sharply higher which helped bring corn and wheat along. In outside markets, the US dollar and equities traded sharply lower while crude oil posted solid gains.
USDA reported a 102,944 MT sale of corn to unknown destinations
Weather over the weekend was a driving catalyst for soybeans as 3 to 5 inches of rain fell in water-soaked areas of Argentina. Flooding resulted in parts of the region resulting in a new risk to some crop areas that either were still flooded from previous heavy rains or just recently experienced improving conditions. Most likely flooding occurred in areas that flooded earlier this summer and new damage to crops may be somewhat limited.
In negative developments, China is said to have cancelled 7 cargos of US ethanol as tariffs start to take effect. The tariff is expected to rise to 30% from its current level of 5%, essentially imposing a blockade on US shipments.
In export news, Japan was in the market for 117,605 MT of milling wheat with the results expected Thursday. The Philippines were also trying to source 165,000 MT of feed wheat.
The US dollar hit its lowest mark in a month as British Prime Minister May promised a parliamentary vote on Britain's deal to leave the European Union and stressed it would seek to stay a key European partner. This bolstered the Sterling giving it the biggest jump since the June Brexit vote.
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