Market News

Weather forecasts pressure grains and oilseeds

Soybeans were lower on technical and fund selling, along with spillover from corn. Crop weather should improve over the next several days and there was just no fresh supportive news for beans. The trade continues to keep an eye on South America and export demand from China, along with U.S. planting conditions. Across the commodity pits, everyone’s getting ready for Friday with USDA supply and demand numbers and the updated winter wheat production estimate out at Noon Eastern, 11 AM Central. According to the Ag Department, as of Sunday, 2% of soybeans are planted, compared to 22% last year and the five year average of 12%. Soybean meal and oil were lower, following the soybean pit.

Corn was lower on fund and speculative selling. That improved planting weather is bearish for corn futures and friendly for planting, but it will take some time for many areas to dry out and for soil temperatures to warm up. USDA reports 12% of corn is planted, compared to 69% a year ago and 47% on average, with 3% emerged, compared to 29% last year and 15% on average. Ethanol futures were lower. Dow Jones Newswires notes farmer selling has slowed down after the recent losses with most focused on fieldwork, keeping the cash basis at a historically high level. South Korea’s Nonghyup Feed Inc. is tendering for 70,000 tons of optional origin corn.

The wheat complex is lower on fund and speculative selling. There’s also an improved weather pattern on tap for the Plains – in the South, dry parts of Kansas could get some rain, while the Northern Plains should be warmer and drier. For the winter crop, 20% has headed, compared to 64% a year ago and 39% on average, with 32% of the crop rated good to excellent, down 1% on week, while 23% of spring wheat is planted, compared to 82% last year and 50% on average and 5% has emerged, compared to 43% last year and 19% on average. European wheat was lower on spillover from the U.S. trade. Libya is tendering for 50,000 tons of milling wheat and 50,000 tons of durum.