Soybeans were mixed on old crop/new crop spread trade with markets and USDA closed Monday for Memorial Day. Old crop supplies remain extremely tight but the cash basis has been moving lower recently, pressuring July, and there’s increasing talk of the U.S. importing soybeans from South America. Brazil’s ports are seeing improved loading and shipping times, and it looks like potential labor issues in Argentina have been put to rest for now. Past that – the trade’s keeping an eye on soil moisture levels and planting conditions as we get closer to June. Soybean meal was mixed on old crop/new crop spreads and bean oil was lower on fund selling.
Corn was mixed on old crop/new crop spread adjustments. Planting conditions look good across most of the Cornbelt and it’ll be very interesting to see how much progress is made when the numbers come out on Tuesday. In any event, the trade’s expecting a big crop but the supply remains tight and demand looks good, especially from the domestic side of the ledger. Ethanol futures were lower. Taiwan’s Maize Industry Procurement Association bought 60,000 tons of corn from Brazil.
The wheat complex was lower on fund and technical selling. There’s more rain in the forecast for parts of the Southern Plains, but the region is in need of a lot more precipitation than what is in the outlook. China purchased 180,000 tons of new crop U.S. soft red winter and South Korea bought 114,000 tons of optional origin feed wheat. Also, Tunisia picked up 75,000 tons of optional origin milling wheat and Israel purchased 30,000 tons of fed wheat. European wheat was lower on spillover from Chicago.