Market News

Demand concerns, outside markets pressure soybeans

Soybeans were lower on fund and speculative selling, in addition to outside market pressure. The crop is developing close to average and the condition rating held at 63% good to excellent. Outside markets were bearish with the Dow and crude oil down sharply following another slow manufacturing report from China. China is the world’s biggest buyer of soybeans and products. Soybean meal and oil were lower, following beans. According to a survey by Farm Futures Magazine, 2016 U.S. soybean planting could be a new record at 86.32 million acres.

Corn was lower on fund and speculative selling, along with spillover from the outside markets. Corn’s developing close to average and while the condition rating was down 1% on the week, the crop is still in very good shape, overall. Most five day forecasts are generally warm and dry around the Midwest. Ethanol futures were mixed. Farm Futures Magazine projects 2016 U.S. corn planted area at 89.65 million acres.

The wheat complex was mixed, with Kansas City and Minneapolis lower. The fundamentals are bearish, but there’s at least some commercial and short covering interest, which supported Chicago. The spring wheat harvest is 88% complete, with good harvest weather expected in many areas. Minnesota and South Dakota were at 95%, as of Sunday. The lower dollar wasn’t much of a supportive factor for wheat, China doesn’t buy a lot of wheat. Still, the general economic uncertainty could delay a domestic interest rate hike by the Fed. Japan is tendering for 126,800 tons of food wheat from the U.S. and Canada. Farm Futures Magazine estimates 2016 U.S. planted area for all types of winter wheat at 40.4 million acres, with hard red winter at 29.2 million, soft red winter at 8 million acres and white winter at 3.1 million acres. Spring wheat is seen at 13.4 million acres, with durum at 2.1 million.