Soybean futures at Chicago once again lead the US grain markets higher. Another 380kt of beans were pencilled in for China overnight, 130kt of corn was switched from corn to beans. Generally the fundamentals for wheat, corn and soybeans in the US tends to be bearish if anything. Not that prices can slip a hell of a lot lower than where we already are. This is resulting in choppy trade and many analyst believe the market is attempting to establish a low around these values.
The US still believe that the problems in EU wheat will result in higher demand for US wheat. With Russia cutting a big wheat crop this is a little hard to believe but US wheat is now competitive price wise with Russian wheat. This has resulted in some short covering by the funds. As September futures get closer to expiry and the punters look towards the December contract this liquidation may increase. Volume in the Sept and Dec contracts is currently very similar.
Storms have been pushing across the US plains over the last couple of days, nothing like the 20″ deluge around Baton Rouge earlier but it has been delaying spring wheat harvest in a few locations. This system should clear the DNS states and harvest should pick up again over the weekend.
The wet weather in the US does have one or two of the major crop forecasters starting to talk about disease in the soybeans and corn. At the moment they appear on top of things and sprays are working but the weather is pruning yields in some states.