Market News

Soybeans down on harvest pressure

 

Soybeans were lower on fund and speculative selling. The trade’s watching harvest activity in South America and the slow corn planting pace in the U.S. If the domestic planting delays continue, it’d likely lead to increased bean acreage. It’s a bit early, but that will probably continue to be a developing story. Soybean meal and oil were modestly lower, following beans. Brazil’s government is meeting with truckers this week. Any actual impact on soybean movement is unknown.

Corn was mixed, mostly fractionally lower. Corn’s watching the weather, with more light to moderate rainfall in the forecast around the region over the next five days. That rainfall will be welcome in some areas, not so welcome in others. The planting pace is currently slower than average, but is ahead of last year. Ethanol futures were lower. According to wire reports, China bought 243,000 tons of dried distillers’ grains in March, up sharply on the month, but down 44% on the year. April DDG imports are projected at 400,000 to 500,000 tons as Beijing continues to buy less corn, likely due to lower prices for corn substitutes.

The wheat complex was lower on technical selling and profit taking. Wheat’s also watching the weather, with more rain in the forecast around most growing areas, except for the northwestern Plains. Aside from some recent damage in India, world crop conditions look good. China bought 55,600 tons of U.S. wheat, along with 60,400 tons and 26,600 tons from unnamed sources. South Korea purchased 35,300 tons of wheat from Australia and Japan picked up 20,000 tons of optional origin wheat. Ukraine’s Ag Ministry reports spring rain planting is 34% complete.