Grains

Grains this morning are mixed with Dec corn -0.50 (-0.13%), Nov beans -4.50 (-0.44%), Sep wheat +0.50 (+0.09%). Grain prices on Thursday closed lower: Dec corn -2.25 (-0.58%), Nov soybeans -6.50 (-0.71%), Sep wheat -5.50 (-0.96%). Bearish factors included (1) a stronger dollar, (2) long liquidation in corn and soybeans ahead of Friday's USDA WASDE report that is expected to show increases in USDA estimates for U.S. corn and soybean production, and (3) increased Russian wheat exports that may reduce foreign demand for more-expensive U.S. wheat after Russia reported its 2018/19 wheat exports from Jul 1-Aug 8 were at 4.6 MMT, nearly double from the same time last year. Wheat prices had surged to a 3-year high earlier this month on concern persistent hot, dry conditions in the U.S. Great Plains, Russia, Europe and Australia will curb global wheat production. Nov soybeans posted a contract low and nearest-futures (N18) tumbled to a 9-1/2 year low last month as trade tensions between the U.S. and China reduced Chinese demand for U.S. soybeans. China's National Grain and Oils Information Center recently projected China 2018 soybean imports may decline by -1 MMT to 95 MMT, the first decline in 15 years.

Monday's USDA Crop Progress report showed that 71% of the U.S. corn crop was in good-to-excellent condition as of Aug 5, down -1 point w/w but +11 points ahead of last year. The Crop Progress report also showed 67% of the U.S. soybean crop was in good-to-excellent condition as of Aug 5, down -3 points w/w but +7 points ahead of last year at the same time. Meanwhile, 74% of the U.S spring wheat was in good/excellent condition as of Aug 5, down -4 points w/w but well ahead of the 32% the same time last year and the best condition for this time of year since 2010.