Big drop for corn, soybeans, and wheat
Soybeans were sharply lower on profit taking and technical selling. Parts of the Midwest and Plains have received rain recently and weekend temperatures could moderate in some areas. Longer term, western parts of the region are expected to see a return to hot, dry weather. Also, some of those areas that have seen rain this week also experienced flooding. Weekly export numbers for beans were neutral to a little bearish. Soybean meal and oil were lower, following beans. The big difference between Wednesday and Thursday’s losses was the lack of any real loss limiting influence, like the supply and demand numbers Wednesday.
Corn was sharply lower on profit taking and technical selling, following through on Wednesday. Corn’s also watching the weather and those expected better growing and development conditions in eastern portions of the region. Weekly export sales recovered from last week’s low, but do show the impact of South America’s supplies hitting the market. Shipments were a little less than what’s needed weekly to meet USDA projections for the marketing year. Ethanol futures were lower.
The wheat complex was sharply lower on profit taking and technical selling. Parts of the northwestern Plains may be seeing some kind of a near term break, but triple digit temperatures should resume soon, with only light rainfall. The global supply side of the market remains bearish. Weekly export numbers were bearish, but, while it is early in the marketing year, cumulative shipments have been good. Strategie Grains reduced its 2017 soft wheat production estimate for the European Union to 140.7 million tons, down about 1 million on the month because of recent hot, dry weather, with most of the reduction in France. That’s still 3% above the 2016 crop. Russia’s Ag Ministry says the wheat harvest is underway after rain delays, with higher yields in Russia and lower yields in Ukraine. Japan bought 62,900 tons of U.S. food wheat and 30,865 tons from Australia.
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