Market News

Corn down on longer term weather outlooks

Soybeans were modestly lower on commercial and technical selling. Export demand continues to be strong, but there is that increased competition from South America. The trade expects record U.S. acreage with new USDA estimates out on the 30th. Soybean meal was mixed, adjusting old crop/new crop spreads, and bean oil was lower, following beans. According to the USDA, the U.S. soybean crush during April 2017 was 150 million bushels, down 10 million on the month and 8 million on the year. Early expectations for Brazil’s next crop are for a 2% to 3% increase in planted area. This year’s acreage was up 1.8%. The Buenos Aires Grain Exchange says 85.5% of Argentina’s soybean crop is harvested.

Corn was modestly lower on commercial and technical selling. Corn’s watching planting with more rain expected in some areas over the next several days, but after that, outlooks are generally better for activity. Crop insurance dates in parts of the Midwest have either passed or are coming up soon with the USDA’s prevent plant numbers out in August. Ethanol futures were higher. Weekly ethanol production and stocks were both up on the week. The USDA says April’s corn grind for fuel alcohol was 433 million bushels, down 6% on the month, but up 8% on the year. Agroconsult projects Brazil’s 2016/17 corn crop at nearly 100 million tons, with harvest of the second crop just getting underway. According to the Buenos Aires Grain Exchange, Argentina’s corn harvest is 38.4% complete, with activity getting underway in northern parts of the nation.

The wheat complex was narrowly mixed. Minneapolis was supported by the continued better demand for higher protein varieties of wheat, along with some condition concerns. Chicago and Kansas City also have condition concerns, but haven’t been able to generate a lot of interest. World crop conditions generally look good at this point and the global supply side of the market is bearish. The Buenos Aires Grain Exchange says 11.3% of Argentina’s wheat crop is planted. Jordan is tendering for 100,000 tons of milling wheat. Weekly export sales are out Friday at 8:30 AM Eastern/7:30 AM Central. The 2017/18 marketing year for wheat got underway June 1st.