Market News

Wheat down on fundamentals

Soybeans were lower on fund and technical selling. It’s a very long way off, but USDA is projecting a significant increase in ending stocks for next marketing year. The new marketing year starts September 1. The bullish weekly export sales and shipments were largely ignored. Soybean meal was mostly lower and bean oil was down.

Corn was lower on fund and technical selling. USDA’s estimating a year to year decline in U.S. corn ending stocks, but again, that’s a very long way off. Weekly export sales were good, while it was another slow week for physical shipments. The U.S. ethanol crush is 7% ahead of a year ago, but processor margins are negative over the past six weeks. Ethanol futures were mixed.

The wheat complex was lower on fund and commercial selling, along with the higher dollar. USDA’s expecting bigger ending stocks next marketing year for wheat as well. Also, it was another bearish week for the export sales and shipments. Thursday, Egypt passed on U.S. wheat citing high prices, even with an export grant from the U.S., and Friday, bought 240,000 tons from France and Romania. Algeria bought 400,000 tons of milling wheat from France.