Market News

Soybeans, corn post losses

Soybeans were lower on commercial and fund selling, along with the higher dollar. The trade’s watching weather in South America with forecasts showing improved planting and development conditions. USDA reports 93% of this year’s soybean crop has been harvested as of Sunday, compared to 91% last year and the five year average of 86%. Soybean meal was mostly lower and bean oil was down with both pits seeing spillover pressure from beans. Deferred meal contracts were supported by a better long term fundamental outlook.

Corn was lower on fund and commercial selling. Corn’s also watching South American weather and there was no fresh supportive news to start out the week. In any event, even if the near term demand outlook is neutral, the long term fundamentals for corn remain supportive. According to the Ag Department, 95% of corn is harvested, compared to 85% a year ago and 71% on average. Ethanol futures were lower.

The wheat complex was mixed in consolidation trade. The trade’s continuing to watch U.S. winter development, the Black Sea export pace, and crop losses around key producing areas of Australia. Cooperative Bulk Handling, via Dow Jones Newswires, estimates Western Australia’s crop at 8.5 million to 9.3 million tons, compared to 15 million a year ago because of drier than normal weather. USDA states 92% of the winter wheat crop is planted, compared to 92% last year and 90% on average, with 73% emerged, compared to 73% a year ago and 74% on average, and 39% in good to excellent condition, down 1% on the week due to continued drought conditions in the hard red winter region. European wheat was up on good demand and the lower Euro. Iraq’s Grain Board issued a tender for 50,000 tons of wheat and 30,000 tons of rice with the U.S. listed as an acceptable origin for both.

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