Market News

Most lower finish for grains and oilseeds

 

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Soybeans were lower on fund and technical selling. The trade’s watching harvest activity, with good anecdotal yields in most areas. There’s a lot of uncertainty about ending stocks heading into the supply and demand report out on the 9th. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. According to Statistics Canada, 2015 canola production is expected to be 14.3 million tons, almost 13% less than last year, and soybean production is seen at 5.9 million tons, 2% below 2014. FC Stone now sees 2015 U.S. soybean production at 3.919 billion bushels, with an average yield of 46.9 bushels per acre, less than what the USDA is expecting. Informa has beans at 3.878 billion bushels with an average yield of 47.2 bushels per acre.

Corn was mostly fractionally lower. Corn was also watching the weather, expecting at least some harvest delay over the weekend in the Southeastern Cornbelt due to Hurricane Joaquin. Contracts may stay in a sideways range ahead of those USDA numbers. Ethanol was mixed. Stats Canada projects 2015 corn production at 12.2 million tons, up 6.2% on the year, with a nearly 10% rise in planted area. FC Stone estimates 2015 U.S. corn production at 13.541 billion bushels, with an average yield of 167.0 bushels per acre, a little less than the current USDA estimates. Informa projects corn at 13.561 billion bushels with an average yield of 168.4 bushels per acre.

The wheat complex was lower on fund and technical selling. Contracts saw a slight correction after the move to seven week highs. Stats Canada’s new wheat production guess is down 1.41% on the year, at 26.1 million tons, but that’s still above USDA’s most recent projection. Jordan is tendering for 100,000 tons of milling wheat and the Commodity Credit Corporation bought 20,400 tons of U.S. hard red winter for distribution in Ethiopia. There’s rain in the forecast for wheat growing areas of Argentina and Brazil, but the Black Sea region and Australia are expected to stay dry over the near term. Ukraine’s Ag Ministry currently has total grain production at 59.5 million tons.

 

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