Market News

Soybeans up on weekly export numbers

Soybeans were modestly higher on commercial and technical buying, but still posted a week to week loss. Weekly export numbers were bullish and the USDA’s Ag Outlook Forum numbers have been largely neutral as this year’s crop isn’t planted yet. USDA sees 2017 production at 4.18 billion bushels with an average yield of 48 bushels per acre and 2017/18 ending stocks at 420 million bushels. The trade’s continuing to watch harvest activity in South America with Safras e Mercado now pegging Brazil’s state of Mato Grosso at 66% complete. Soybean meal and oil were higher, following beans. The International Grains Council sees 2016/17 world soybean production at 336 million tons, up 2 million from the last guess.

Corn was modestly lower on commercial and technical selling. Corn’s also watching South America with a bullish week for exports and largely neutral Ag Outlook numbers. USDA has this year’s corn crop at 14.065 billion bushels with an average yield of 170.7 bushels per acre and 2017/18 ending stocks of 2.215 billion bushels. The USDA’s next supply and demand report is out March 9th and prospective planting projections are due on March 31st. Ethanol futures were mostly lower. According to China’s Customs Ministry, January corn imports were 160,000 tons. The International Grains Council projects 2016/17 global corn production at 1.049 billion tons, 4 million more than the prior estimate.

The wheat complex was mostly lower with Chicago and Kansas City down on commercial and technical selling. Weekly export numbers were neutral and the new USDA projections have been neutral to bearish. The USDA has wheat at 1.837 billion bushels with an average yield of 47.1 bushels per acre and 2017/18 ending stocks of 905 million bushels. A weather shift could cause some damage to U.S. winter wheat, but given the large world supply, those concerns are largely on the back burner. Minneapolis was fractionally mixed. Jordan bought 25,000 tons of optional origin milling wheat. France’s AgriMer has soft wheat conditions at 90% good to excellent, a little lower than a year ago. The International Grains Council sees 2016/17 world wheat production at 752 million tons, unchanged.