Market News

Weather, RFS send corn lower

 

Soybeans were higher on fund and commercial buying. Weekly export numbers were strong and sales are ahead of the USDA projection for the marketing year. Unknown destinations bought 202,000 tons of new crop U.S. beans. Soybean meal was mostly weak on end of the month position squaring. Soybean oil was sharply higher on the higher biodiesel mandate in the RFS, along with Argentina’s recent retroactive hike of export duties. Also in Argentina, wire services are reporting exporters and crushers at the Rosario port are eager to reach an agreement, with the potential for an expanded work stoppage by a major crush union next week.

Corn was lower on fund and speculative selling. There was more rain in the forecast for and crop development conditions mostly look good. Also, the lower ethanol requirement for corn based ethanol for 2015 and 2016 in the RFS was a negative. The weekly export numbers were neutral to bullish. Ethanol futures and ethanol credit prices were lower, following the new RFS announcement.

The wheat complex was lower on fund and speculative selling. The marketing year ends on Sunday and it was another bearish week for wheat export numbers. There’s more rain around the Plains, with a risk for flooding over the weekend. However, the market remains much more focused on the generally good global growing weather. There are some areas to keep an eye on though, especially the Canadian Prairies and Southern Russia. Russia is scheduled to start a new wheat export tariff at the start of the new marketing year on July 1st. If the measure is applied, it would restrict exports if the ruble drops below a certain point.