July Corn finished up 9 1/2 at 659 1/2, 1 3/4 off the high and 12 1/4 up from the low. December Corn closed up 4 3/4 at 550 3/4. This was 9 up from the low and 3 off the high.
The corn market began the day steady, holding near the unchanged levels but buyers showed up midday and the positive day of trade remained into the closing bell. Tight supplies and slow farmer sales helped to support the July/December spread. The river market was steady to slightly lower on weak export demand.
South Korea bought 134,000 tonnes of optional origin corn overnight. Shipment locations were thought to be the US, South America, South Africa, or Eastern Europe. The uncertain weather outlook continues to limit the downside while at the same time offering a bit of optimism over growing conditions in June and July.
The bear camp contends that the cool and wet spring suggests soil moisture reserves have been recharged and the weather patterns have changed which could present near normal conditions this summer. The bulls argue that with such a large percentage of the crop planted within the same week, any signs of above normal heat during the key pollination period may trigger drastic reductions in yield and total production. Both points of view continue to keep the trade choppy and two sided.
July Rice finished up 0.14 at 16.14, equal to the high and 0.03 up from the low.
Soybeans
July Soybeans finished up 28 3/4 at 1540 1/2, 3 1/2 off the high and 25 3/4 up from the low. November Soybeans closed up 8 at 1327. This was 13 up from the low and 2 1/2 off the high.
July Soymeal closed up 15.1 at 463.4. This was 14.0 up from the low and 2.7 off the high.
July Soybean Oil finished down 0.03 at 48.04, 0.3 off the high and 0.08 up from the low.
July soybeans traded up double digits on the day along with the July/November soybean spread. Meal had a strong day of trade as interior cash markets strengthen on steady demand. Soybean basis levels held steady in processor markets but there continues to be lingering doubts as to just how much old crop supply is left in the farmer's bins.
A well-known oilseed analyst estimated that they expect the global soybean crop to increase by 18% in the year to 284 million tonnes with larger production out of the US, Brazil, and Argentina. The production rebounds were contingent on weather patterns for the growing season. Port union workers in Argentina announced that they may go on strike this week due to discrepancies with the government. There was the potential for farmers to halt any further soybean sales as well which might have helped support July soybeans and meal today.
Wheat
July Wheat finished up 7 at 696 3/4, 3 off the high and 10 up from the low. December Wheat closed up 5 3/4 at 719 1/2. This was 9 up from the low and 2 off the high.
Chicago July wheat traded higher on the day with KC July trailing just behind it in gains. Row crop markets saw a bit of support despite relatively negative action in the outside markets. Japan's farm ministry said it was looking for 120,000 tonnes of feed wheat but wanted to exclude supplies shipped from the PNW.
These actions are in response to the discovery of the GMO wheat in Oregon. The ministry said they would accept only soft red winter wheat from the US. Thailand bought 55,000 tonnes of feed wheat this week sourced from the Black Sea for August/September shipment. Other Southeast Asia feeders were thought to be inquiring on feed wheat from the region like Indonesia, the Philippines, and Malaysia. Tunisia bought 75,000 tonnes of soft milling wheat overnight, likely from the Black Sea as well. Wheat futures in Paris edged lower but maintained a mostly steady trade ahead of tomorrow's USDA report. A warmer trend has developed in areas of France and Germany this week which has been very timely for the crop and should help boost conditions and growth.
July Oats closed down 6 3/4 at 403 1/4. This was 7 up from the low and 4 3/4 off the high.
