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Grains were mixed and Crude Oil Gave Back on Recent Gains

USDA announced flash sales with China

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Grains were mixed with little change from yesterday’s close while crude oil gave back some of its recent gains.

USDA announced three flash sales deals this morning with 130,000 MT of China for old crop delivery and 110,000 MT to China for new-crop delivery. A deal for 100,000 MT of soymeal for new crop was also sold to an unknown destination.

The Buenos Aires grains exchange said Argentina’s soy harvest was progressing smoothly after drier weather in recent weeks. Storms that flooded half the agricultural region prompted the loss of 1.65 million hectares dedicated to soybeans. However, the group kept output forecasts for the bean on hold at 56 MMT this season following a recent cut, thanks in large part to record yields in provinces like Buenos Aires and La Pampa. That is only slightly lower than USDA’s estimate of 56.5 MMT.

China has begun to offer up corn reserves to their domestic market to try and eliminate massive stockpiles that have been accumulating over the past 15 years. This morning they announced they auctioned off 889,000 MT.

The Western Cornbelt will likely see active rain systems in the next 5 days before turning drier in the 6 to 10 day forecast. Showers will be intermittent and limited in the eastern Midwest and much of the Delta in the next two weeks to aid fieldwork, as the best rains focus west of the Mississippi River. A tropical disturbance will bring some wet weather to the Carolinas this weekend as well, but damage threats are low. Follow-up showers in the 6 to 15 day will keep late fieldwork sluggish in the region.

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