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Market Commentary: Grains Turnaround Fizzles; Soymeal Surges on Domestic Demand

The CBOT saw mixed trade on Wednesday as the grain markets (corn and wheat) failed to follow through on Tuesday’s reversal and instead either sank lower or ended essentially unchanged while the soy complex continued Tuesday’s show of strength. Soymeal was the upside leader in the soy complex with basis levels rising and domestic demand picking up after markets hit multi-month lows earlier this week. That helped pull soybeans higher as well, along with a rally in Brazilian FOB basis offers. Corn saw listless trade that resulted in fractional changes for the day while wheat pulled back in technically benign days on the charts. Funds emerged as net sellers in grains again but continued to pare back shorts in the soy complex. ...

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