Market News

Soybeans up, corn down ahead of weekly planting report

Soybeans were modestly higher on commercial and technical buying. USDA was expected to report good corn planting progress, potentially lessening the anticipated increase in bean acreage. As of Sunday, the USDA says 32% of U.S. soybeans are planted, compared to 34% a year ago and the five year average of 32%, and 8% have emerged, compared to 9% on average. Demand for beans is strong, but the trade’s wary about probable record South American production and what could be a large U.S. crop. Weekly export inspections were nominally bullish, but do show the impact of that South American crop. Soybean meal was mostly weak and bean oil was firm on the adjustment of product spreads. The National Oilseed Processors Association reported member firms crushed 139.1 million bushels of beans in April, less than expected and down 6% on the year. Bean oil stocks were also smaller than anticipated and down from a year ago.

Corn was modestly lower on commercial and technical selling. Corn was getting ready for the USDA’s weekly crop progress report with scattered rain in the forecast this week for parts of the region. At least as of Monday afternoon, the weather outlook was generally mixed for most of the Cornbelt. The USDA says 71% of U.S. corn is planted, compared to 73% last year and 70% on average, and 31% has emerged, compared to 36% typically this time of year. Corn’s also watching Argentina’s ongoing corn harvest and the development of Brazil’s 2nd crop. Weekly export inspections were bullish and DTN notes increased barge traffic probably helped the weekly total. Ethanol futures were mixed.

The wheat complex was lower on commercial and technical selling. The supply side of the market is bearish and while there has been some domestic crop loss or damage, it’s unlikely to change the fundamentals, primarily because of the global nature of the market. Warmer and drier conditions in the Plains should help some of that crop recover. The current marketing year wraps up at the end of May and it was another bearish week for export inspections. For winter wheat, 51% of the crop is in good to excellent condition, down 2% on the week, and 63% has headed, compared to 57% on average. For spring wheat, 78% is planted, compared to 87% a year ago and 73% on average, and 40% has emerged, compared to the usual pace of 44%. Iraq bought 50,000 tons of wheat from Australia.