Market News

Corn up, soybeans down, expecting some change to acreage

Soybeans were modestly lower on commercial and technical selling. Planting weather is expected to improve in much of the Midwest and recent corn and spring wheat planting delays may mean an increase in acreage. Informa Economics now sees U.S. bean acreage at 89.662 million acres, compared to their previous guess of 88.7 million and the USDA’s March 31st figure of 89.5 million. Informa has production at 4.270 billion bushels with an average yield of 48.0 bushels per acre and harvested area of 89.017 million acres. Brazil’s harvest is about to wrap up with their government estimating production at a record 113 million tons. Soybean meal was lower and bean oil was higher, adjusting product spreads.

Corn was modestly higher on commercial and technical buying. Corn’s also watching the weather and while the planting pace is expected to accelerate, corn has likely lost some acreage to soybeans. Informa’s latest corn projection is 89.716 million, compared to its last estimate of 90.8 million acres and the USDA’s current guess of 90.0 million acres. Production would be 14.060 billion bushels with an average yield of 170.6 bushels per acre and harvested area of 82.395 million acres. Demand’s solid and USDA’s projecting tighter U.S. ending stocks. Ethanol futures were higher.

The wheat complex was weak on commercial and technical selling. Wheat was also watching weather, expecting improving development conditions for winter wheat and planting weather for spring wheat. The USDA’s expected to reduce its winter wheat production estimate in the near future, as this week’s projection did not factor in recent damage. Informa has all U.S. wheat planting at 45.589 million acres, with 32.747 million winter wheat and 10.888 million spring wheat; the remainder is durum. Informa sees all wheat production at 1.820 billion bushels with an average yield of 47.8 bushels per acre and harvested area of 38.109 million acres. Algeria bought 470,000 tons of Black Sea origin milling wheat.