Soybeans were mixed on profit taking in the nearbys against commercial buying in the deferreds. Demand is good – China cancelled on 147,000 tons of old crop U.S. beans and then bought 262,000 tons of new crop beans, and unknown picked up 120,000 tons of old crop U.S. beans. There’s some rain in the near term forecast but there are uncertainties about coverage and totals. Soybean meal was mixed in consolidation trade while oil was up on oversold signals. Informa Economics expects 2012 U.S. soybean acreage to hit 75.959 million acres, 137,000 more than they were projecting in May, 2.1 million above USDA’s March guess, and 983,000 larger than the 2011 total.
Corn was lower on fund selling and profit taking. There was no real fresh news and overall, corn was pretty much just watching the weather. There’s at least some rain in the forecast for the Central Midwest, however, it may not be enough precipitation for some areas. Ethanol futures were lower. Friday afternoon, Informa Economics pegged U.S. acreage at 96.759 million acres, up 895,000 from USDA’s March guess and 4.83 million above a year ago. According to Ukraine’s Ag Ministry, corn stocks as of June 1 were 4.1 million tons, with 1.6 million of that on farm. All grain stocks were 10.9 million tons, 79% larger than on June 1, 2011.
The wheat complex was lower on profit taking and technical selling. Near term fundamentals remain bearish, especially on the supply side, but there are world crop concerns with a lower production estimate out of China. Beijing pegs the crop at 118 million tons, compared to the May projection of 120.3 million, citing excessive rain and disease. Also, the European Union has extended its suspension of feed wheat import taxes until the end of the year. Informa Economics estimates 2012 U.S. wheat acreage at 57.6 million acres, steady with their prior projection and up 3.2 million from last year. That includes 13.5 million acres of spring wheat and 2.4 million acres of durum. Japan issued a sell-buy-sell tender for 81,000 tons of food wheat, 42,000 tons of food barley, and 5,000 tons of malting barley. Ukraine’s Ag Ministry reports wheat stocks as of June 1st were 5.2 million tons, 2.1 million of that held by farmers. Canada expects 2012/13 wheat production to total 26.7 million tons, compared to 26.6 million last month and 25.261 million last year. Exports are seen at 18.2 million tons and ending stocks are projected at 6.1 million tons.
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