So he thinks some farmers might plant soybeans in place of corn if what he calls “incessant rain” keeps up.
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Soybeans eased on technical selling and slowing export demand, while Chicago wheat finished unchanged after a late round of short-covering. Chicago Board Of Trade most-active corn contract fell 0.4 percent to $3.92-1/4 a bushel by 0313 GMT, after hitting a two-week high of $3.94-1/4 a bushel on Monday.
“The problem for both the soybean and corn crops in Brazil is that the crops are shrinking at the same time that the exports are being front-loaded and running at a very fast pace”, Cordonnier said. The analyst said he had a “slightly lower bias” toward the soybeans and a “lower bias” on the corn.
“Corn planting advanced five points and is now 83 percent complete, compared to 92 percent a year ago and 76 percent for the five year average”.
The grain had come under pressure earlier on better crop conditions.
“More U.S. exports would alleviate the coming harvest indigestion to some degree but it does need to continue”, Gorey of Commonwealth Bank of Australia said.
And the USDA reports 62 per cent of the winter wheat crop is rated good to excellent.
UkrAgroConsult on Monday raised its forecast for Ukraine’s 2016 wheat harvest to 21.5 million metric tons from 19.8 million.
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There are expectations the USDA’s June 30 acreage report could show a shift of 1-2 million acres from corn into soybeans, compared with the government’s March 31 planting intentions report.
