Soybeans were lower on technical selling, spillover from wheat and profit taking after Tuesday’s move to nine month highs. China bought 115,000 tons of new crop U.S. beans ahead of the open and traders are getting ready for what could be a bullish supply and demand update. Ahead of the report, the average guess for soybeans is a crop of 3.406 billion bushels with an average yield of 43.8 bushels per acre. Aside from that, there was no real fresh fundamental influence and with wheat dropping, soybeans couldn’t hold onto the early gains. Soybean meal and oil were lower following the lead of soybeans.
Corn was lower on technical selling, profit taking and spillover from wheat. Also, contracts were a little overbought after corn’s recent move to near two year highs. The harvest is underway in the Southern Midwest with many areas getting a jump on activity due to the faster than average crop development. There are some concerns about harvest delays, but with activity still very limited, the trade’s taking that in stride. Past that – traders are waiting for the USDA’s supply and demand numbers out Friday. The average guess for production is 13.199 billion bushels with average yield at 163.1 bushels per acre. Ethanol contracts were up modestly.
The wheat complex was sharply lower on fund selling and profit taking. Unknown destinations bought 109,000 tons of U.S. hard red winter, but Egypt picked up 240,000 tons of soft red winter from France, bypassing U.S. supplies once again due to the relatively high price. Also, Stats Canada’s new update showed larger than expected wheat stocks with the supply up 19% from last year. Tunisia bought 120,000 tons of durum wheat (50,000 tons optional origin, 45,000 tons U.S. and 25,000 tons European). France’s AgriMer pegs soft wheat ending stocks at 2.229 million tons, down from a year ago, with exports to non-E.U. nations seen at a record 11.0 million tons. According to the European Commission, via Dow Jones Newswires, there’s “no problem” with E.U. cereal supply levels. Russia’s Ag Ministry reports winter grain planting is behind the year ago pace and the Ministry continues to anticipate planting being roughly equal to a year ago. China’s National Grain and Oils Information Center reports 11% of the 1.45 million tons of wheat up for state auction were sold this week.
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