Corn began the morning trading higher but has slipped and is now lower despite a hot and dry forecast expected to last over the next 14 days.
There are concerns that water levels on the Mississippi River will be low again this year which would impact barge traffic and shipping.
Rains continue to fall in Brazil which is keeping the harvest pace slow but also may create an early planting possibility in September.
Brazilian corn exports in the month of August are expected to reach 9.19 million tons versus 6.89 million tons in the same month a year ago.
Soybeans also began the day on a higher note but have moved lower and have now filled the gap left over the weekend. Soybean meal is lower along with soybean oil front months, while deferred soybean oil contracts are higher.
The 14-day forecast which is hot and dry would be expected to offer support, but prices seem to be running into some resistance at the 14-dollar level in November.
This morning, the USDA reported a sale of 10.0 mb of new crop soybeans to unknown destinations which comes after a string of recent export sales.
Crush demand has been firm as margins increase with one bushel of 14-dollar soybeans reportedly able to be crushed into 17.35 worth of soybean meal and oil.
Wheat is mixed with Chicago trading higher but KC and Minn contracts lower as prices struggle to find support despite tight ending stocks.
Both US and HRW wheat are expecting their second-lowest ending stocks-to-use ratios in 10 years, but the lack of export demand is weighing on prices.
Wheat production in Canada is expected to be 14.2% lower than last year’s crop, according to estimates released Tuesday by Statistics Canada on its website.
Fighting escalated between Russia and Ukraine again last night after Ukraine fired several drones into Russia and reportedly destroyed some Russian military planes.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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