Grains were lower as beans came under pressure and wheat and corn were fractionally weaker. In outside markets, the US Dollar was weaker while crude oil was in positive territory going into the morning trade.
Weather models are showing rains are expected to hit northern Brazil in the coming 10 days with 65% coverage expected. Also, Argentina is not expected to be as wet. However, it is still very wet and rains will be prominent into the weekend. Rains are expected to hamper some late season planting in Argentina.
The latest Drought Monitor conditions in the US showed dry conditions eased in the SE US in the last week, but intensified in OK. Little change was noted in other areas of the US Plains.
Stocks of soybeans at Chinese ports are reportedly down. Soy crush demand is still robust with crush margins still seasonally high, but import shipments have been slowed a bit by logistics issues.
Crude oil will get fresh news this morning from EIA on crude oil inventories. Expectations are for a 2.15 million barrel decline in stocks versus last week. However, the past two weeks have seen oil inventories build, contrary to expectations which have been for inventory draw-downs.
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