Market News

Corn, soybeans down, expecting better planting weather

Soybeans were modestly lower on commercial and technical selling. Exports have slowed down, but the weekly numbers were neutral to bullish and still on pace to meet USDA’s estimates for the marketing year. Corn planting delays will likely mean increased soybean acres and there’s talk of some acres switched over from spring wheat as well. Soybean meal was lower and bean oil was higher, adjusting product spreads. The Buenos Aires Grain Exchange says 66.5% of Argentina’s soybean acres are harvested. CONAB reports Brazil’s soybean harvest is nearly finished with production estimated at 113 million tons.

Corn was modestly lower on commercial and technical selling. Corn’s watching weather, with another round of rain in parts of the Midwest, but maybe not as much as originally forecast and most areas are expected to see a drier pattern after that. Weekly export sales were a marketing year low. Ethanol futures were higher. According to the Buenos Aires Grain Exchange, 31.8% of Argentina’s eligible corn acres are harvested. CONAB estimates Brazil’s first corn crop at 31.05 million tons with the second crop at 62.68 million. Allendale says a recent Chinese auction of state corn reserves sold 85% of wheat was offered.

The wheat complex was modestly higher on short covering and technical buying. Weekly export numbers were bearish with a net cancellation on old crop and only a few weeks left in the marketing year. The trade’s expecting an eventual reduction in the USDA’s recent winter production estimate, because it didn’t take into account recent damage. Japan bought 76,357 tons of U.S. food wheat, along with 31,560 tons from Australia and 30,271 tons from Canada. CONAB expects lower wheat acreage in Brazil this year because of low prices and large supplies.