Market News

Soybeans up, corn down in quiet trade

Soybeans were modestly higher on commercial and technical buying, along with the lower dollar, in pretty low trade volume. Demand continues to be good, even if exports are seeing a lot of additional competition from South America. Friday’s USDA reports are expected to show a year to year increase in quarterly stocks and the acreage number could be above March’s projection. The numbers are out Friday at Noon Eastern/11 AM Central. Weekly export numbers are set to be released Thursday at 8:30 AM Eastern/7:30 AM Central. Soybean meal and oil followed beans higher.

Corn was modestly lower on profit taking and technical selling. Corn’s also getting ready for Friday’s USDA numbers, with a lot of uncertainty about acreage after the slow start to planting. Analysts expect planted area to be down slightly from March’s guess, with a year to year increase in stocks. Near term weather forecasts are generally non-threatening, but some medium term outlooks do have warmer weather in some key growing areas. Ethanol futures were lower. The U.S. Energy Information Administration says ethanol production last week averaged 1.015 million barrels per down, up 25,000 on the week. Stocks were 21.838 million barrels, down 442,000 from the week before. Russia’s Ag Ministry says this year’s grain harvest has begun, with lower yields and a late start after widespread rainfall.

The wheat complex was higher on speculative and technical buying. Minneapolis took the lead again on concerns about spring wheat conditions, with more mostly dry weather expected in the northern Plains. The nearby contract closed above $7 for the first time in a few years. Chicago and Kansas City are watching the ongoing winter wheat harvest. Quarterly U.S. wheat stocks are expected to be up on the year. Statistics Canada is set to release updated acreage numbers Thursday, with wheat expected to be below the April estimate and the 2016 total. Strategie Grains pegs France’s soft wheat crop at 35.6 million tons, compared to their last guess of 37.2 million tons, and below most industry estimates.