Market News

USDA numbers, weather spark strong reactions

Soybeans were sharply higher on commercial and technical buying. The USDA’s acreage number was only up a little from March, a little less than what many were expecting, but still a new all-time high for the U.S. Soybean stocks were above a year ago, but did reflect good quarterly movement. Friday was the first notice day for July grain and oilseed contracts. The next set of supply and demand numbers is out July 12^th. Soybean meal and oil followed beans higher. The Buenos Aires Grain Exchange says 98.7% of Argentina’s soybean crop is harvested, with production of nearly 57 million tons.

Corn was higher on commercial and technical buying. The USDA says producers actually planted a little more corn than expected, with prevent plant numbers out in August. Suffice it to say, the numbers answered some questions, but created some new ones too. The trade is now watching the weather, with dry or even drought conditions in some key U.S. growing areas. Grain stocks were up 11% on the year, but did show good quarterly movement. Ethanol futures were higher. According to the Buenos Aires Grain Exchange, 51% of Argentina’s corn crop is harvested, with a running total of 21.6 million tons, and mixed yield results.

The wheat complex was sharply higher on speculative and technical buying. The USDA reported a lower than expected acreage number and quarterly movement was solid. The trade’s mostly focused on expanding drought in parts of the northern Plains and quality concerns for winter wheat. Chicago and Kansas City made up some ground on Minneapolis. DTN says Jordan bought 50,000 tons of milling wheat from an unknown origin. France’s AgriMer says 65% of that nation’s soft wheat crop is in good to excellent shape, down 3% on the week because of hot, dry weather. The Buenos Aires Grain Exchange reports 64.7% of Argentina’s wheat crop is planted.