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Rain in Plains pressures wheat

Soybeans were lower on commercial and technical selling. The trade’s watching South American harvest activity and the U.S. corn planting pace. It’s early in the season and some areas should make good planting progress, but a slow corn planting pace into may would likely mean more bean acreage. Weekly export sales were below most estimates, but it was another good week for shipments. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was lower on commercial and technical selling. Most 10-day forecasts have mixed planting conditions in much of the Midwest, but it is still early in the season and some areas should make decent progress. Long term forecasts for the growing season are considered to be non-threatening. Weekly export numbers were good, with solid sales and shipments. Nearby ethanol contracts were mostly weak. According to the USDA’s attaché in Russia, corn production this year should be 15.3 million tons, unchanged on the year, with exports of 5.4 million tons.

The wheat complex was lower on commercial and technical selling, along with the firm dollar. Kansas City led the way down on the recent rainfall in the Southwestern Plains and forecasts for more precipitation in the region. Weekly export numbers were neutral with about a month and a half left in the marketing year. Overall demand continues to be relatively slow because of the large available world supply. Western Europe is a little dry, but that’s on the back burner. Ukraine’s UkAgroConsult projects 2017 grain production at 60.9 million tons. The USDA’s attaché in Russia expects 2017 wheat production to be 66 million tons, down 9% on the year, with exports of 28 million tons.

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