Soybeans

Bearish news: Trader profit taking has started as harvest pressure begins. Soybean export inspections were down 40 percent this week. The good to excellent rating was left at 64 percent. World carryover supply estimates are at a record high of 65 million tons, next year 75 million.

Export inspections are down 40 percent near 7 million tons. Palm oil exports have decreased 17 percent.

China is selling 1.5 million tons of soybean reserves into domestic markets to hold down prices. U.S. exports in August were near 3 million tons, down a million from July. Weekly export sales of 614,000 tons were disappointing.

Bullish news: Yield estimates for soybeans have turned slightly lower but the crop condition rating remains above average.

Export sales have been exceeding expectations for two months. Soy oil deliveries were above expectations at 35,000 contracts. Soy-oil deliveries of 7,600 contracts support prices. World demand projections are over 250 million tons but production is expected to exceed that number by at least 7 million tons.