Market News

Corn and wheat up, soybeans mixed ahead of USDA numbers

Soybeans were narrowly mixed in pre-report position squaring. The trade’s getting ready for Thursday’s USDA supply, demand, production, and prevent plant numbers. The range of estimates is for production is pretty narrow, but the average guess is for a slight decline from July’s projections. Near term forecasts have more moderate temperatures and generally scattered rain in key growing areas. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. The USDA announced the cancellation of 130,000 tons of 2016/17 U.S. soybeans sold to unknown destinations. CONAB will also be releasing updated numbers for Brazil Thursday.

Corn was higher on short covering and technical buying. Corn’s also watching the weather, while getting ready for those USDA numbers. On average, the trade’s expecting a reduction in yield and production estimates. The supply, demand, and production numbers are out at Noon Eastern/11 Central with prevent plant figures scheduled for 3 Eastern/2 Central. A few crop tours are scheduled to get under way in the days and weeks following this round of numbers. Ethanol futures were lower. The U.S. Energy Information Administration says ethanol production last week averaged 1.012 million barrels a day, up 10,000 on the week, and stocks were 21.347 million barrels, a week to week increase of 495,000.

The wheat complex was higher on short covering and technical buying, along with the weak dollar. The trade’s expecting a lower spring wheat production number, the question is just how big of a reduction in this round of reports. This year’s spring wheat harvest is about a quarter complete with winter wheat about to wrap up. DTN says Indonesia bought 150,000 to 200,000 tons of feed wheat and the Philippines picked up 50,000 tons of feed wheat, both likely Black Sea origin, and Jordan purchased 50,000 tons of optional origin milling wheat. Weekly export sales will also be out Thursday at 8:30 AM Eastern/7:30 AM Central.