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Soybeans Gain in the Overnight Session

Crude prices end their two day rally

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Grains found support in the overnight session. Soybeans lead the bounce, gaining almost 16 cents.

Concerns of moisture stress are on the horizon for parts of the grain belt. According to the Commodity Weather Group, scattered showers may occur in mainly southern Nebraska/Kansas/Missouri/southwest Iowa in the next five days, with only patchy activity elsewhere in the Midwest. However, widespread rains are expected to favor the central/northwest Midwest in the 6 to 10 day and will keep most of the driest spots in the Midwest limited to Indiana/Ohio/Michigan (15% of belt).

The CWG also stated there may be a few showers that may scatter through the southern Great Lakes in the 11 to 15 day, but some moisture stress will likely persist. Elsewhere, the favorable moisture and lack of extreme heat will aid corn/soy yields. Mid 90s are possible in the southwest Midwest next Wednesday to Friday, but highs otherwise remain in the 80s/low 90s in the next two weeks.

Crude prices began to slip today, ending a two-day rally. The glut of crude and its refined products weighed on markets while investors eyed a possible stutter in China’s imports.

In world news, France's farm ministry cut its yield estimate for this year's soft wheat harvest to a 30-year low. The plunge in yields led the ministry to reduce its soft wheat production estimate to 29.1 million tonnes from 36.95 million forecast last month, now down 29 percent on last year's record 40.9 million tonnes and the lowest level since 2003. The downward revision in French wheat crop is equivalent to the size of the entire wheat crop of Romania, the 5th largest wheat grower in the EU.

South Korea, the fifth largest market for U.S. wheat, had suspended clearance of U.S. wheat for food use and stepped up quarantine measures for U.S. milling and feed wheat shipments in the wake of the U.S. GMO wheat discovery last week. In other news, flash sales of 498,000 metric tons of new crop soybeans were sold to China.

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