Market News

Corn, soybeans finish near session highs

Soybeans were higher on commercial and technical buying. Near term forecasts have more rain in parts of the Midwest, further delaying planting. It is still relatively early in the U.S. planting season though and South American harvest conditions generally look good. Informa Economics projects Brazil’s 2016/17 crop at 113 million tons and sees Argentina at 56.8 million. New USDA supply and demand estimates are out on the 10th. Soybean meal was higher and bean oil was lower, adjusting commercial spreads.

Corn was higher on commercial and technical buying. Corn’s also watching the weather, with a decent planting window expected this weekend in parts of the region, after the rain event. Brazil’s second corn crop is in good condition and Argentina’s harvest is ongoing. Informa Economics estimates 2016/17 corn production in Brazil at 96 million tons with Argentina at 38.0 million. Ethanol futures were steady to lower. The U.S. Energy Information Administration says ethanol production last week averaged 986,000 barrels a day, down 1,000 on the week, with stocks of 23.213 million barrels, 56,000 less than the previous week.

The wheat complex was mixed with Chicago mostly weak, Kansas City down, and Minneapolis up. The trade’s monitoring a major crop tour in Kansas, with variable conditions reported Wednesday, and planting conditions in the Northern U.S. Plains and Canada. The global and domestic supply side of the market remains bearish, but weather could be an issue this growing season in parts of Europe. Informa Economics now expects 2017 U.S. winter wheat production to total 1.326 billion bushels.