Market News

Soybeans lower, watching weather

Soybeans were lower on speculative and commercial selling. Forecasts for this week have scattered showers and cooler temperatures in most of the Midwest, ahead of good development conditions in August. As of Sunday, 76% of U.S. beans are blooming, compared to the five year average of 66%, and 35% is at the pod setting stage, compared to 26% on average. 71% of soybeans are rated good to excellent, steady with a week ago, but with 1% moving from good to excellent. Demand is solid, but the trade’s expecting a big crop. Soybean meal and oil followed beans lower.

Corn was modestly lower, following the lead of beans. Corn’s also watching the weather and expecting generally non-threatening conditions. Last week’s weather was very hot, but the trade’s expecting minimal impact from heat stress. The USDA says 79% of corn is silking, compared to 70% on average, and 13% is at the dough making stage, matching the typical pace. 76% of U.S. corn is called good to excellent, unchanged from last week. Ethanol futures were higher.

The wheat complex was higher on commercial and technical buying. Weekly export inspections were good and wheat’s continuing to see buying interest near the lows. The fundamentals remain bearish, especially on the supply side of the balance sheet. At 83%, the winter wheat harvest is slightly ahead of both last year and the five year average. 68% of spring wheat is in good to excellent shape, down 1% on the week.