Market News

Rain pressures grains and oilseeds

Soybeans were lower on fund and speculative selling. Contracts backed down from last week’s highs due to widespread soil moisture recharging rainfall. In any event, there was no real fresh news to start out the week and there are continued concerns about long term Chinese demand due to a combination of previously purchased beans and credit issues. That said – the tight near term supply did help contracts close above session lows. China reports soybean imports for March were 4.623 million tons, 3.693 million of that U.S. beans, with year to date purchases at 15.346 million pounds, 13.738 million of that U.S. origin. Soybean meal and oil were lower, following the lead of beans.

Corn was lower on fund and speculative selling. Corn’s also watching that rainfall and expecting some solid planting progress, but, there are definitely delays in some areas. USDA reports 6% of corn is planted, less than what the trade had been expecting, compared to 4% last year and 14% on average. Since that planting figure was lower than expected, corn may be able to pull a Turnaround Tuesday session. Ethanol futures were higher. According to China’s Ministry of Commerce, corn imports for March were 48,131 tons, down nearly 80% on the year, with the U.S. supplying 11,942 tons, a 95% drop, and Thailand accounting for 34,500 tons. So far this year, Chinese corn purchases are 1.179 million tons, 15% ahead of a year ago, with the U.S. making up 859,561 tons of the total. Friday, unknown destinations bought 128,000 tons of 2013/14 U.S. corn.

The wheat complex was sharply lower on fund and speculative selling. The trade’s responding to rainfall in the Southern Plains, but the region will need a lot more. For the winter crop, USDA says 9% has headed, compared to 17% on average, with 34% of the crop rated good to excellent, unchanged, but with 1% moving from good to excellent, and for spring wheat, 10% is planted, compared to 7% a year ago and 19% on average. China’s Ministry of Commerce states March wheat imports were 538,950 tons, 86% larger than March 2013, with Australia accounting for 325,684 tons. For the year to date, Chinese wheat purchases are 1.843 million tons, 167% above this time last year, with most of that from Australia, followed by the U.S. The trade’s also keeping an eye on political developments around the Black Sea region.

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