Soybeans were lower on technical selling, profit taking, and spillover from the outside markets. The dollar was higher with the Dow and crude oil sharply lower. Weekly export sales were good but shipments were less than what’s needed to meet USDA estimates. Fundamentals remain solid as China bought 120,000 tons of old crop Friday morning. Soybean meal and oil were lower, following beans.
Corn was lower on profit taking, technical selling, and spillover from the outside markets. Old crop exports were a new marketing year low, but that was mostly due to the very tight supply, and it was also a slow week for new crop sales. Temperatures are expected to cool down over the near term but there’s not much precipitation in the forecast. Ethanol futures were lower. According to Ukraine’s National Weather Center, corn production should be 20 million to 21 million tons, down from the previous estimate due to low soil moisture, heat stress and early maturity.
The wheat complex was lower on profit taking, technical selling, and spillover from the outside markets, especially the dollar. Export sales were at the low end of estimates and it was a slow week for shipments. Still, the trade’s watching world weather problems, particularly around the Black Sea region. European wheat followed U.S. trade lower. Japan bought 60,175 tons of Australian standard white milling wheat. Australia’s Bureau of Statistics reports May 2012 wheat exports were 2.27 million tons, down 3.8% on the month but up 25% on the year. Ukraine’s National Weather Center lowered its crop outlook to 42 million tons, down 1 million to 2 million from the last guess, with the Ag Ministry adding 26% of the expected area has been harvested.