Chicago Soybeans Set New Lows For The Recent Move

25/07/16 -- Soycomplex: Soybeans closed lower and back below $10/bu setting new lows for the recent move on Midwest rains. "Heavy rainfall doused the Midwest last week, at least one inch of rainfall but 3-4 inches in parts of Iowa, Illinois and Wisconsin. At least 85% of corn and soybean farms received a drenching rain, Nebraska the notable exception," said Martell Crop Projections. Weekly export inspections came in at 700,715 MT. Weekly crop conditions were unchanged at 71% good to excellent (62% a year ago). The USDA said that 76% of the crop is blooming (10 points ahead of average) and that 35% is setting pods (up 9 points on avg). Aug 16 Soybeans settled at $9.83 3/4, down 22 3/4 cents; Nov 16 Soybeans settled at $9.66 1/4, down 22 cents; Aug 16 Soybean Meal settled at $338.90, down $7.80; Aug 16 Soybean Oil settled at 29.46, down 75 points.

Corn: The corn market closed slightly lower. Weekly export inspections of 1.307 MMT continue to hold up at decent levels. The USDA had corn crop conditions unchanged after the close whereas the trade was expecting a 1 point drop to 75% good/excellent (70% a year ago). "The time worn adage is that 'rain makes grain', especially in July. This is the period when the critical pollination process occurs in corn. Tassels shedding pollen are captured by silks, each silk fertilizing individual kernels on the ear. Drought interferes with the fertilization process, leaving blank spots on the corn ear. Poor pollination in corn is not a worry this summer, however, because rainfall has been ample if not abundant," noted Martell Crop Projections. The USDA had 79% of the crop "silking" compered to 70% on average, and 13% of the crop at the "dough" stage (in line with the recent average). The Brazilian safrinha harvest is said to be 50% complete and the crop is in trouble. Sep 16 Corn settled at $3.34 3/4, down 1/4 cent; Dec 16 Corn settled at $3.41 1/4, down 1/2 cent.

Wheat: The wheat market closed higher across the 3 exchanges. Support came for another crop downgrade for France, this time to 30 MMT or less from almost 41 MMT a year ago. Weekly export inspections of 549,894 MT were fairly good. The USDA said that 83% of the US winter wheat harvest is now complete versus 79% on average. Spring wheat is 68% good to excellent, down 1 point from a week ago. The USDA's FAS in Argentina estimated winter wheat plantings there at 4.6 million ha (up from 3.765 million ha a year ago). They see production in 2016/17 at 13.7 MMT (2015: 11.3 MMT), with exports at 7.5 MMT of which 4-5 MMT will go to Brazil. Morocco tendered for 133,000 MT of soft wheat. Iran were said to have bought 350,000 MT of EU/Baltic hard wheat for Oct/Nov shipment. Syria are tendering for 150,000 of soft wheat. I'd expect Egypt to be back in the market soon also. The Tunisian grain harvest is said to be 90% complete. Dec 16 CBOT Wheat settled at $4.56 1/4, up 6 cents; Dec 16 KCBT Wheat settled at $4.49 1/2, up 4 1/2 cents; Dec 16 MGEX Wheat settled at $5.13, up 2 cents.