Market News

Planting pace pressures corn

 

Soybeans were lower on fund and technical selling. Argentina’s harvest is around halfway complete and while southern Brazil’s getting some rain, it shouldn’t be much of a delay. Past that – the continued strong demand is limiting losses. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. According to China’s 2015 to 2024 Ag Outlook, China is expected to increase soybean imports steadily as demand rises, reaching 82.66 million tons by the end of the projection.

Corn was lower on fund and technical selling. As of Sunday, 9% of corn is planted, slower than average, but ahead of last year’s pace. There’s colder weather and more rain in the forecast around the region, including the already wet Delta and Ohio River Valley. Ethanol futures were mixed. Argentina has authorized another 3.5 million tons of corn for export during the current marketing year, bringing the total sales potential to 8 million tons. China’s 2015 to 2024 Agricultural Outlook has 2024 corn imports at 7.2 million tons, but does note that could increase if domestic stocks aren’t sufficient.

The wheat complex was higher on short covering. The U.S. winter wheat crop is developing well and the crop condition rating held steady over the past week. Spring wheat planting is way ahead of average at 36% complete. Japan is tendering for 107,700 tons of U.S. and Canadian wheat. In two separate tenders, the United Arab Emirates is in the market for 160,000 and 6,000 tons of wheat.