Market News

Corn up modestly on new export sale

Soybeans were modestly lower on profit taking and commercial selling. Brazil’s harvest is ahead of average and almost 20% complete, so there’s a lot of export competition on the horizon. Their key production state of Mato Grosso is nearly at the halfway mark. Brazil’s Vegetable Oils Industry Association sees total production at 104.6 million tons, above the USDA’s most recent guess. Most forecasts have more rain this week in already wet parts of Argentina. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. According to China’s Ag Ministry, January 2017 soybean imports were a new monthly record at 7.66 million tons.

Corn was firm on commercial and technical buying. Corn’s also watching crop conditions in South America, along with the planting of Brazil’s second corn crop. According to Allendale, the planting of Mato Grosso’s second corn crop is 47% complete. Unknown destinations bought 101,600 tons of 2016/17 U.S. corn and it was a bullish week for export inspections. Still, corn’s bracing for the impending introduction of South American supplies to the export market. Ethanol futures were lower.

The wheat complex was mostly modestly higher with Chicago and Kansas City up on short covering and technical buying. Warm weather in the Midwest and Plains could bring winter wheat out of dormancy early, a couple of weeks earlier than normal. USDA lowered U.S. and world ending stocks last week, but the fundamental outlook remains bearish. March Minneapolis was the exception to the complex, down modestly on spread trade. Japan is tendering for 120,000 tons of optional origin feed wheat and Morocco is in the market for 263,636 tons of soft wheat from the E.U.