Grains were higher yet again with soybeans leading the complex on a 15-cent advance overnight. In outside markets, crude oil was higher while the US dollar was lower.
Grains were higher overnight fueled by weather. The near term weather forecasts turn hot with dryness expected in the western belt and S Plains.While short-term beneficial for crop development, hot weather in June is fueling fears of what could happen in July during the critical growing season.
Chinese customs data on Wednesday shows they imported 7.66 mmt of soybeans
during the month of May, that compares to the 7.07 mmt imported in April. For Jan-
May imports totaled 31 mmt, up 14.56% on the year. This morning USDA reported a 132,000 MT old-crop sale of beans to China. This adds to previous sales of 205,0000 MT for new-crop previously reported this week.
The crop report on Friday is expected to show the continued tightening of US and world corn and soy stocks on strong demand and crop issues in the Southern Hemisphere while wheat production and stocks are expected to build.
API weekly crude stocks were smaller than expected on Tuesday as stocks fell 3.56 million barrels. That compares to last week's change of a 2.35 million barrel build. Official government EIA stocks data will be released this morning with traders looking for a 2.74 million barrel fall in inventories.
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