Drought still pushing grains higher

Livestock also feeling impact of heat

 Soybean Fundamental Support: August soybeans finished 12 1/2 higher at 1494 1/4 and November finished 10 1/4 higher at 1438. We saw an export sale of 1.2 million tonnes of 12/13 delivery to an unknown destination announced at 8 am this morning from the USDA. This is the fifth largest export sale in history. There were rumors around the market today that this export sale was to Brazil to satisfy contracts they made that they could not fulfill with their production. This is probably not what happened but just gives you an idea of how bullish the trade has become. Good to excellent ratings came in at 45% which is down 8% from last week. The trade was expecting a 3% drop in ratings. Weather forecasts were helping to push this market today as the forecast is hot and dry for the next few days and with restricted rainfall the trade is continuing to look at a crop that is showing signs of stress. We saw the November contract come under pressure as the corn began to rally later in the session which leads me to believe the fund money is selling their soybean contracts in favor of corn. The trade knows good rains in late July and August will make the crop and with any sign of rain in the forecast we should see pressure as pod fill is the key timeframe and good rains still opens the door to a good crop…Cordon Sroka

New Highs: New highs were made today on continued yield concerns as well as this new overnight sale…Rich Nelson

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