Market News

Lower dollar supports wheat

 

Soybeans were higher on fund and commercial buying. Soybeans continue to be caught in between solid demand and an increasing supply. Planting and emergence are both ahead of average, but have slowed in some areas. Soybean meal was higher on commercial demand and the adjustment of product spreads. Bean oil was down on that spread trade and profit taking. AgRural reports 68% of Brazil’s 2015/16 soybean crop has been sold, compared to 75% this time last year.

Corn was higher on short covering and commercial buying. Planting is nearly wrapped up and emergence is a little faster than average. The crop condition rating held steady over the past week and development conditions generally look favorable. Ethanol futures were lower. There are increasing reports of domestic and international ethanol plant expansion being suspended following last week’s RFS announcement. According to the European Union, 2015 corn production is projected at 68.1 million tons, compared to the prior guess of 66.3 million.

The wheat complex was higher on commercial and technical buying, along with the lower dollar. The trade’s still assessing weekend freeze damage in the Canadian Prairies. Aside from that, growing conditions around most of the world appear to be non-threating. Wheat is keeping an eye on weather in parts of Russia and India. The European Union estimates soft wheat production at 141.5 million tons, down slightly from the previous estimate and more than 7 million below last year’s record. Russia’s Ag Ministry projects 2015/16 grain exports at 25 to 30 million tons, if production hits 100 million tons. Russia’s new marketing year starts July 1st.