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USDA numbers send soybeans, corn lower

Soybeans were lower on commercial and technical selling. The USDA raised Brazil’s soybean production and export estimates, now expecting a bigger crop than Brazil’s government is currently, with USDA projecting 108 million tons and CONAB at 107.61 million. Argentina was left unchanged from last month and the USDA raised domestic ending stocks while lowering exports. The Rosario Grain Exchange has Argentina’s soybean crop at 56 million tons. Weekly export numbers were nominally bullish, but a nonfactor. Soybean meal and oil followed beans lower.

Corn was lower on commercial and technical selling. The USDA increased production and export projections for Argentina, Brazil, and South Africa. U.S. ending stocks were unchanged with lower feed use cancelling out bigger ethanol demand. CONAB now has Brazil’s crop at a combined 88.97 million tons and the Rosario Grain Exchange sees Argentina’s corn crop at 38 million tons. Weekly export sales were bullish, but not much of a factor after the WASDE report, and Japan bought 120,000 tons of 2016/17 U.S. corn. Ethanol futures were higher.

The wheat complex was mixed with Chicago and Kansas City down and Minneapolis up. The USDA tightened U.S. ending stocks a little more than what some analysts were anticipating, expecting lower imports, but increased world ending stocks, along with the production estimates for Argentina and Australia. The overall fundamental outlook remains bearish. Weekly export numbers were neutral to bearish. Saudi Arabia is tendering for 720,000 tons of food wheat and Tunisia is in the market for 75,000 tons of milling wheat, all optional origin. Turkey bought 130,000 tons of milling wheat from the European Union.

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