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Exports, rain in Argentina send corn, soybeans lower

Futures Markets copy

Soybeans were lower on fund and technical selling. Weekly export sales were a net reduction, but that was expected after a big cancellation by China. Forecasts have much needed rain in dry parts of Argentina this weekend. CONAB now sees Brazil’s soybean crop at just over 100 million tons, down from the January guess, but still a new all-time high. Informa currently has Brazil at 100.5 million tons and Argentina at 60 million tons. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. According to Statistics Canada, canola stocks on December 31st, 2015 were 12.1 million tons, down 3.9% on the year.

Corn was lower on fund and technical selling. Weekly export sales were larger than expected, but remain well behind last year’s pace, and shipments continue to be slow. Corn’s also watching weather in South America, especially the rain headed for Argentina. CONAB projects Brazil’s corn crop at 83.3 million tons, up 1 million on the month. Informa estimates Brazil’s production at 81.5 million tons with Argentina at 26 million tons. Ethanol futures were higher. According to Statistics Canada, corn stocks at the end of 2015 were 11.4 million tons, up 17% from a year ago.

The wheat complex was lower on fund and technical selling. Weekly export sales were a new marketing year low and shipments were also bearish. Forecasts for much of the U.S. winter wheat region are dry and commercial demand should continue to limit losses. Japan bought 71,500 tons of U.S. wheat, along with 35,300 tons from Canada and 34,500 tons from Australia. Algeria purchased 450,000 to 500,000 tons of milling wheat from France. Statistics Canada reports wheat stocks at the end of last year were 20.7 million tons, 19.3% below the end of 2014, due to lower production and tighter beginning stocks. Informa expects India’s wheat crop to total 87 million tons, with China at 130 million.

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