Soybeans futures are 2 to 3 cents lower after posting 12 to 14 1/4 cent gains in the nearby contracts on Tuesday. Most of the buying was short covering, with new longs nibbling at January. Soybean meal was $4.40/ton, with soy oil 12 points higher. There were rumors again that China would be buying US Ag products to smooth negotiations, though advisor Navarro downplayed any expectations. Sales of soybeans and meal to Mexico were also supportive. USDA is expected to show a reduction of 25 mbu to old crop ending stocks to 1.045 bbu on Thursday. New crop carryout is estimated to be cut by 101 mbu to 654 mbu. The trade assumption there is lower production via a yield cut. That will likely be the key number to watch on Thursday, but there is always the risk of “buy the rumor, sell the fact”. CONAB updated their 18/19 Brazilian soybean crop estimate to 115.03 MMT, a slight increase from Aug and vs. USDA’s 117 MMT.
-- provided by Brugler Marketing & Management