Market News

Soybeans, corn, wheat give back some gains

Soybeans were lower on profit taking and technical selling, along with spillover from the outside markets. Beans took back a little of the recent gains after Monday’s move to more than one year highs. Argentina has lost a significant, but still unspecified, amount of beans after heavy rain, with estimates generally between 5% and 15%. Soybean meal and oil followed beans lower. According to Allendale, Brazil shipped 10.086 million tons of soybeans in April, a new record for the month, and up 3.5 million from April 2015. From January through April 2016, sales are 60% ahead of 2015.

Corn was lower on profit taking and technical selling, in addition to the outside market influence. There were delays in some key growing areas last week, but 45% of U.S. corn is planted and 13% has emerged, both faster than average. Forecasts for much of the Midwest most of this week are generally warmer and drier. Ethanol futures were lower. Celeres has lowered its estimate for Brazil’s second corn crop by 10% to 52.8 million tons, citing recent weather problems. Allendale reports Brazil shipped 368,000 tons of corn in April, more than double a year ago, or 138%. Corn’s also keeping an eye on drought in South Africa, typically a net exporter.

The wheat complex was lower on profit taking and technical selling, along with outside market pressure, particularly the dollar. 61% of winter wheat is rated good to excellent, improving slightly, with a major crop tour starting this week. Spring wheat is more than half planted and about a quarter of the crop has emerged. Israel is tendering for 40,000 tons of optional origin feed wheat. The fundamentals remain bearish with a large available world supply and slow export demand for U.S. wheat. There are some world weather concerns, but not necessarily market driving concerns, yet.