Can’t keep the bean market down apparently. After a day of “fund” buying we now are getting fundamental support from both Arg. and palm oil. The increases in palm oil take us back to nearly 5 year highs and SA has now become a weather watch as predictions for Arg. areas are now predicted to be drier than previously expected for as many as 10 days now. While a long way from a real threat to curb production that cannot be recovered, it does put it on the precipice that if pushed farther out, it would. Del. in oil are at 410 today. OI in beans ramped back up yesterday and so did the OI. Oil and meal were left in the lurch with minimal gains on OI and ave. volume. Spreads still indicate no hint of pressure in the nearby contracts. However, the interesting part is that NC is being pressured to a greater inverse instead of encouraging additional acreage in the US that will be needed, if in fact this dry spell in Arg. would become a prolonged one. Stay tuned. Stats Canada produced better yields and thus a 1.4 MMT better canola crop on today’s report with .2 MH less harvested. While not large even bean production was up .6 MMT in the report. 198 TMT sold to China and 378 TMT to unknown reported this am by USDA. Look for better prices to again reign as technical and index buying will be coupled with a few spooked end users getting covered.
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