Market News

Expected record crops put more pressure on corn, soybeans

 

Soybeans were lower on fund and commercial selling, hitting new contract lows. The big bearish factor for beans continues to be this year’s record expected crop. Demand’s strong, but not having much of an impact, and the trade’s also keeping an eye on early planting in South America. USDA reports 45% of soybeans are dropping leaves, compared to 53% on average, and 3% is harvested, compared to 8% on average. 71% of U.S. beans are rated good to excellent, down 1% from a week ago. Soybean meal and oil followed beans lower.

Corn was lower on fund and commercial selling. The big negative for corn is also this year’s expected record U.S. crop and harvest weather looks good. USDA states of corn has 90% dented, compared to 92% on average, and 42% of the crop is mature, compared to 54% on average, with 7% harvested, compared to 15% on average. 74% of corn is in good to excellent shape, unchanged on the week. Ethanol futures were lower. According to AgriVisor, corn planting is underway in Argentina, with acreage expected to be down on the year. Allendale adds China has recently purchased corn from Bulgaria and Ukraine due to price and GMO concerns with U.S. supplies.

The wheat complex was mostly lower. Contracts are technically oversold and Egypt did buy 55,000 tons of U.S. soft red winter wheat, but the overall fundamentals for wheat remain bearish due to the large available world supply. For the spring wheat crop, 86% is harvested, compared to 92% on average, and for winter wheat, 25% is planted, compared to 22% on average.