Mixed weather forecasts support corn, soybeans, wheat
Soybeans were modestly higher on commercial and technical buying. Forecasts have more scattered rain in the Midwest and Plains, and while parts of the region remain dry, it is still early in the growing season. Weekly export numbers were bullish. Soybean meal was lower and bean oil was higher, adjusting product spreads. The NOPA says member firms crushed 149.246 million bushels of soybeans during May, the second most for that month on record and more than what analysts had been expecting. Soybean oil stocks were up on the month, but down on the year.
Corn was modestly higher on commercial and technical buying. Corn was also watching the weather, with that scattered rain helping to limit some of the impact from the recent heat. It’s been a variable weather year and that probably won’t stop any time soon. Suffice it to say, there’s a lot up in the air right now for corn: acreage, demand impact from Brazil’s second crop, and this summer’s weather, among others. Weekly export numbers were neutral. Ethanol futures were higher.
The wheat complex was higher on commercial and technical buying. The trade’s watching winter wheat harvest activity and weather, with mostly dry conditions expected in the Plains, helping the winter harvest, but further damaging the spring crop. Concerns in the eastern Midwest aren’t quite as eye catching, but parts of the soft red winter region could see harvest delays. Weekly export numbers were neutral and the supply side of the market remains bearish. Japan bought 98,536 tons of U.S. food wheat, along with 35,130 tons from Australia and 28,620 tons from Canada.
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