Grains were holding on to modest gains heading into the morning break after a night of fairly limited two-sided trade.
USDA reported a 120,000 MT sale of soybeans to unknown destinations. Half of it is for OC delivery and the remaining half for NC 2017 delivery.
Wheat harvest was slowed last week in TX/OK as rains kept farmers from making much progress. According to US Wheat Associates, the TX crop was 27% cut while the OK crop was 16% cut. A high percentage of wheat acres in SW OK extending southward into C TX Texas have been swathed for hay, or otherwise abandoned, in favor of planting cotton.
In Argentina, rains have slowed the corn harvest there as farmers have cut only 40% of the crop versus a normal pace of 60% at this time of year. This could lead to a glut of corn on the market later this summer. Argentina is expecting a record overall 2016/17 corn crop of at least 39 million tonnes, with about 60 percent, a bigger proportion than ever, planted late in the season. Brazil is usually the dominant exporter in August and US supplies are generally just coming to market in September, so Argentina’s crop getting such a late start and slow harvest could add to the price pressure.
In the US Northern Plains, the weather continues to point to mostly dry conditions thru mid-June. A small amount of moisture is expected in the next day for SD/ND but after that it will be another before week before any noticeable precip shows up.
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