Grains lower heading into the holiday
Soybeans closed lower. Coming off strength in soybean meal which set a new high Tuesday. Argentine workers are threatening strike, potentially shifting business to the U.S. But rumors of China canceling U.S. soybean purchases is driving down the market. The basis for soybeans remains strong but logistic freight issues are a factor.
Corn finished lower. South America is expected to receive rainfall for the next few days relieving drought conditions. The weekly ethanol report showed production up 28,000 barrels per day with stocks up by more than 660,000 barrels but with poor demand last week. Ukraine is nearly done with its corn harvest and reports say it is down six million metric tons from last year.
The wheat complex closed lower. With broad selling during the session. It’s expected to be mostly quiet heading into the holiday. Dry weather in the western U.S. plains has been hurting wheat as it heads into dormancy. But scattered rain in the forecast for Kansas and Oklahoma could be supportive. A weakening dollar and recent purchases by Taiwan and South Korea are supporting the market.