Grains are mixed. SN is unchanged and near 8.52. CN is unchanged and near 3.27. WN is up 1 cent and near 5.42. US stocks are higher. Crude is higher. US Dollar is higher. Gold is higher.
Talk that US states may soon adapt a plan to slowly reduce virus stay at home rules may be offering support.
Talk of US farmer coronavirus aid may also be helping prices. Drop in US livestock production could reduce US feed and soymeal demand. Drop in weekly ethanol production could also lower corn demand. US and Black Sea weather looks to be improving. Europe and Argentina are still dry.
Weekly US wheat export sales are est near 150-350 mt, corn 600-1.200 and soybeans 300-600.
China bought 7 Brazil soybean cargoes for Jun-Sep. Despite the fact US prices are lower, China continues to buy from Brazil. Some are watching POTUS for action given lack of China Phase 1 buying. China domestic soymeal stocks are all time lows. Argentina lowered their soybean crop due to dryness. Parana River levels continue to drop.
Drop in US corn demand continues to offer resistance to corn prices. Talk of more favorable US weather next week could help corn planting pace. US farmer selling remains slow. Brazil farmer remains active seller of corn.
Wheat prices have been on the defensive due to talk of better Russia weather. Europe and Ukraine are still dry. US HRW weather also looks dry. Little new interest in Word wheat export trade also offers resistance with World stocks record high.
On Wednesday, Managed funds were net sellers of 7,000 contracts of SRW Wheat; net bought 12,000 Corn;
net bought 1,000 contracts of Soybeans; net sold 2,000 Soymeal, and; sold 4,000 Soyoil. We estimate
Managed Money net long 13,000 contracts of SRW Wheat; net short 132,000 Corn; net long 8,000 contracts of
Soybeans; net long 24,000 lots of Soymeal, and; net short 5,000 Soyoil.
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