Market News

Soybeans supported by tight supplies in Brazil

Soybeans closed higher Wednesday, regaining some of the week’s losses.  There are questions about the size of this year’s U.S. soybean crop. DTN says that in the June 30 report, soybean acres are expected to be higher than USDA’s March estimate, but there may also be surprises. Rain Wednesday from Iowa to Indiana is good for the crop, but hot weather is a concern in Kansas and Missouri. Soybeans are getting support from good demand.  Tight supplies in Brazil have pushed soybean prices to roughly 90 cents above those at the U.S. Gulf.

Corn closed lower Wednesday, unable to hold the modest gains from earlier in the session.  Beneficial rain fell Wednesday from Iowa to Indiana, but it looks drier for the rest of the week with heat advisories in Kansas and Missouri.  There are questions about the size of the U.S. corn crop, and USDA’s June 30 acreage estimate may shed some light on it. Corn demand is bullish with Brazil’s prices roughly 60 cents above corn at the U.S. Gulf. Thursday’s vote on whether the U.K. wants to stay in the European Union could have an indirect effect on grain markets.

July Chicago wheat closed a quarter-cent higher Wednesday, but the rest of the months were lower.  Harvest progress continues in the southwestern Plains. Up north, temperatures are staying mild, and there is a chance for rain in Canada, benefiting spring wheat. Reports from Europe are that their wheat yields will come in above the five-year average.