Market News

Weather concerns support soybeans

Soybeans were higher on commercial and technical buying. Temperatures in many key growing areas are expected to stay moderate as the crop heads into key development stages. Parts of the central and western Midwest should remain dry, potentially negatively impacting this year’s crop. The USDA’s first field survey based production estimates of the year are out August 10th, along with new supply and demand numbers and prevent plant totals. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. Bean oil and beans had additional support from a federal appeals court ruling ordering corrective action after the EPA reduced the biodiesel mandate from 2014 to 2017.

Corn was steady to modestly higher on commercial and technical buying. Corn is also watching the weather, especially the expanding dry conditions in parts of the Midwest. Record South American production is slowing export demand for U.S. corn, but some of that’s cancelled out by solid domestic demand, especially with expansion in the U.S. cattle and hog herds. Ethanol futures were higher.

The wheat complex was mixed, mostly higher. The spring wheat tour’s average yield was down sharply on the year and probably only going to go lower. The USDA’s first spring wheat harvest estimate of the year is expected to be out Monday. For all the uncertainties about the accuracy of crop tours, the weather definitely had a large negative effect on the U.S. and Canadian spring wheat crops. Aside from those North American woes and concerns about parts of Europe and Australia, global conditions mostly look good.