The market is mixed this morning going into this morning’s USDA report, as the soybean and meal markets are stronger. Funds were sellers across the board on grains and oilseeds yesterday, adding 5k contracts to the CME wheat short on risk-off trading ahead of the USDA report. Weekly export inspections were favorable last week at 497 TMT, which was near the top of the estimate range and the 10-week high. Winter wheat conditions improved 1% last week to 62% g/e, with favorable weather conditions leading to improvements in CO, KS, NE, and OK. Cash markets remain firm to start the week, as good weather has buyers nervous that higher protein levels will be limited from new crop production. KC July dropped to a new contract low yesterday at $4.44, but closed off the low, but strong support could be another 11 cents lower. Look for trade to closely watch the 11am USDA reports, but soybeans will be the driver until numbers are released.
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