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Soybeans, wheat lower on supply

Soybeans were lower on fund and technical selling. As of Sunday, 72% of the crop is rated good to excellent, pretty much unheard of for this time of year, and long term fundamentals look bearish, with the trade expecting a record crop. Still, there are at least some concerns about muddy fields in parts of the Midwest, which is something to keep an eye on as we get closer to widespread harvest. Chinese soybean crushers signed a deal Monday to buy a large amount of U.S. beans, but there could be some cancellations in the near futures due to poor margins. Soybean meal and oil followed beans lower.

Corn was firm on oversold signals. 74% of corn is rated good to excellent, great for this time of year, and while late development and early harvest are a bit behind average, the trade’s not too worried, at least not yet. Corn also has a bearish long term fundamental outlook, but on Tuesday, the path of least resistance was up modestly. Ethanol futures were higher.

The wheat complex was lower on fund and technical selling. 74% of spring wheat is harvested due to delays in the Northern Plains and 12% of winter wheat is planted, with soil moisture in the Southern Plains getting recharged by recent rainfall. The overall fundamentals for wheat also look bearish, primarily due to the large available world supply. Egypt bought 180,000 tons of wheat from France.

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