Prices 15/8/17

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Weather in the US is good for row crops thus follow through selling from last week’s USDA report came unchallenged and both Chicago soybean and corn futures moved lower. Wheat is caught up in technical selling at Minneapolis and talk of increasing world wheat stocks. Apart from the foreseeable adjustments to US spring wheat production wheat is now struggling for bullish news.

In the weekly US crop condition report the punters were expecting a 1% increase in the G/E rating for corn, it has come out with a 2% increase so there will be added pressure there tonight as well. The punters were also expecting to see a 1% increase in soybeans but instead the USDA has reduced the G/E rating on beans by 1%, this should limit downside in soybeans and canola. Spring wheat is sitting at 45% harvested and saw an increase of 1% in the G/E rating, this far into harvest it is probably irrelevant but the punters will use it to talk values lower overnight.

Brazilian corn is pricing itself into the SE of the USA and into EU markets. US weekly exports numbers are falling as the S.American product replaces it. The US only has two options if they don’t want to build stocks, devalue the USD or reduce export prices. The better quality wheat harvest should help internal feed markets absorb more corn this year too.

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