Market News

Corn, soybeans lower, despite weather issues

Soybeans were lower on profit taking and technical selling. USDA was expected to report slower than average U.S. planting with more rain possible in some areas at mid-week, but it’s still relatively early in the season. As of Sunday, 14% of U.S. soybeans are planted, compared to 21% a year ago and the five year average of 17%. The trade’s still expecting big, if not record, U.S. acreage this year. Soybean meal was lower and bean oil was higher on the adjustment of products spreads. China reportedly bought more than 8 million tons of soybeans in April, a new record high for the month. Weekly export inspections were bullish.

Corn was lower on profit taking and technical selling. Corn was also waiting for the weekly planting progress update ahead of next expected round of rain and watching some harvest delays in parts of Argentina. The USDA says 47% of corn is planted, compared to 61% last year and 52% on average, and 15% has emerged, compared to 25% a year ago and 19% on average. USDA’s new supply and demand numbers are out Wednesday, including the first 2017/18 projections, which will be based off of the USDA’s March 31^st acreage numbers. Brazil’s second corn crop is generally in good condition. Ethanol futures were lower. Weekly export inspections were bullish.

The wheat complex was lower on commercial and technical selling. Forecasts have more rain in winter wheat growing areas against a generally drier, warmer pattern for spring wheat planting. The USDA’s new winter wheat production estimate is out Wednesday. For winter wheat, 53% is reportedly in good to excellent condition, down 1% on the week, and 50% has headed, compared to 46% typically this time of year. 54% of spring wheat is planted, compared to the five year average of 60%, and 21% has emerged, compared to 29% on average. The supply side of the market remains bearish. France’s AgriMer says 75% of France’s soft wheat crop is in good to excellent shape, down 3% on the week and below year ago levels. Strategie Grains projects France’s 2017/18 crop at 37.4 million tons. Jordan is tendering for 100,000 tons of optional origin milling wheat. Weekly export inspections were neutral to bearish with less than a month left in the 2016/17 marketing year for wheat.