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On the Grains Grain markets are lower in overnight trade, even though fundamental developments should be somewhat supportive. A sudden heat wave for Argentina seems to be intensifying through the next week that will increase the urgency that rains forecast in their 10-day outlook actually happen and don’t fall short in coverage or amounts. If they don’t, recent increases in their crop outlook for both corn and beans could be pared back. EIA ethanol stats for the week were also improved. Output rose 21% over the week before and yet ethanol stocks were down 6% from the week before even down more than 3% from a year ago. The drawdown was the second biggest weekly decline on record and the result of recent improvement in gasoline demand. So what’s with the weaker overnight markets? Two other realities at work. First the stock market certainly didn’t care for the rather hawkish remarks from the Fed following yesterday’s decision to leave rates unchanged. That in itself was not unexpected. What they didn’t like were hints that market expectations for a series of cuts beginning perhaps as soon as next month were excessively optimistic. Fed Chair Jerome Powell says the decisions are guided…

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