Soybeans continued to plunge lower overnight giving up nearly 20 cents a bushel on new-crop November. Corn and wheat drifted lower as well.
Weather models continue to show a wet and cooling trend from the recent heat wave. Temperatures should return to seasonal norms by early next week and even dip below normal by late next week.
Yesterday after the close, Argentina’s government bumped up forecasts for the corn and bean crop for the 2015/16 marketing year. They pegged the soybean crop at 58.8 MMT vs 58.0 previously while the corn crop was projected to be 39.8 MMT versus a previous estimate of 37.9 MMT.
Wheat prospects deteriorated sharply in Europe in recent weeks due to worse than expected damage from heavy spring rain, prompting analysts to slash crop estimates with French output seen at its lowest in 13 years. Consultancy ODA Groupe expects the 2016 crop in the largest EU wheat producer and exporter to be less than 30 million tonnes, down from 32 million pegged last week and 35 million estimated on July 6. If realized, that would be the lowest French wheat harvest since 2003 and is far below the record 2015 crop of nearly 41 million tonnes.
Crude futures were on track for weekly losses on Friday as investors reassessed U.S. data on oil stocks and excesses in oil products in Europe and Asia. While many expect global oversupply of oil to ease in the near term, huge amounts of crude remain in vessels at sea and storage tanks on land as the rebalancing takes longer than some had anticipated. While U.S. production has been falling, crude inventories are at 519.5 million barrels, historically high for this time of year according to EIA.
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