Corn began the day relatively unchanged, but has moved lower making new lows for the year due to harvest pressure despite hot and dry conditions, which may affect crop ratings.
In Brazil, the second crop corn harvest is nearing completion, but has been delayed due to heavy rains and flooding. While this delays harvest, it will likely set up good conditions for planting.
China’s corn harvest has dodged the worst of the typhoon flooding that hit the country and is now expecting a 2.7% increase in total corn output.
Two ships arrived at Black Sea ports in Ukraine over the weekend to load grains and other food products after the European Commission said that it would not extend the current ban on imports of Ukrainian grains.
Soybeans are trading lower with the November contract slipping below the 200-day moving average. Both soybean meal and oil are lower as well.
Palm oil futures gapped lower on the open, following three consecutive days of gains, and Chinese veg oils were sharply lower as well. This comes after China has said they would double the imports of Malaysian palm oil to 500,000 tonnes a year.
Private exporters reported to the U.S. Department of Agriculture export sales of 123,000 metric tons of soybeans for delivery to China during the 2023/2024 marketing year. The marketing year for soybeans began September 1.
Brazilian farmers have planted 0.4% of the 23/24 soybean area compared to 0.16% planted at this time last year.
All three wheat products are lower with the biggest losses in K.C. wheat, with some pressure seemingly coming from the two vessels taking on Ukrainian wheat for export, as well as lower French milling wheat.
As Ukraine loads up vessels to export grain along the coast of Romania, Russia keeps up attacks on the port of Odesa. Over the weekend, attacks continued with drones and missiles inflicting damage.
Hungary has imposed a ban on 2024 Ukrainian farm products, which includes grains, vegetables, meat products, and honey. Slovakia has also banned Ukrainian grain imports until the end of 2023.
Friday’s CFTC data showed funds increasing their net short position by 5,458 contracts, leaving them short 84,139 contracts.
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