Market News

Domestic demand expectations support corn

Soybeans were lower on profit taking and technical selling. Domestic demand should stay strong, even if exports take at least some hit from South American production. Harvest conditions in Brazil generally look good. Forecasts do have rain in Mato Grosso, but their pace is far enough ahead of average that it may not be much of a factor. The USDA’s Ag Outlook Forum is expected to project 2017 soybean acreage around 87.580 million acres. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was higher on commercial and technical buying. Corn’s looking at very strong domestic demand projections ahead of USDA’s Ag Outlook Forum this week. Early expectations are for at least some decline in acreage. A wire survey ahead of the forum has an average projection of 91.046 million acres. Prospective Planting numbers are out March 31st. Ethanol futures were higher. Weekly EIA production and stocks data is out Thursday. The USDA reported South Korea canceled on 136,000 tons of 2016/17 optional origin corn.

The wheat complex was higher on commercial and technical buying. The supply side of the market is bearish and there’s plenty of export competition, but there’s also at least some continued buying interest and the dollar was weak. Forecasts have more dry weather in parts of the Southwestern Plains. There’s some probable winter weather damage in Russia, but the full extent isn’t known. According to wire reports, the USDA’s Ag Outlook Forum could have all wheat acreage at 46.852 million acres. Taiwan bought 102,850 tons of U.S. milling wheat.