Market News

Weather forecasts send corn, soybeans lower

Soybeans were lower on commercial and technical selling. The USDA’s national condition rating was down 1%, but development remains a little ahead of average. Forecasts have at least some rain in many areas over the next week. Soybean meal and oil followed beans lower. The National Oilseed Processors Association says member firms crushed 144.718 million bushels of soybeans in July 2017, larger than expected and up on both the month and the year. China and unknown destinations each bought 132,000 tons of 2017/18 U.S. soybeans. The 2017/18 marketing year for beans, and corn, starts September 1st. According to Brazil’s Development Ministry, so far this year, soybean exports are 53.37 million tons, up 3.5% from the total for all of last year and slightly behind 2015’s record pace.

Corn was lower on commercial and technical selling. The national corn condition rating improved and even if development is a little slow, the trade expects good weather during key development phases and a big crop. The USDA’s most recent production estimate was larger than expected, with the next projection due out September 12th. A major Midwestern crop tour is scheduled to get underway next week. The USDA’s attaché in China says their domestic corn prices have jumped to near one year highs recently, with 2017/18 production expected to be 210 million tons, down 4% on the year. This marketing year, Beijing encouraged producers to lower domestic production and ease the supply glut by planting other crops. Ethanol futures were lower ahead of the U.S. Energy Information Administration’s weekly production and stocks report.

The wheat complex was lower on commercial and technical selling. Rain in the southern Plains will help to recharge soil moisture ahead of winter wheat planting. Harvest is 95% to 100% complete in 14 of the 18 top winter wheat production states. There continue to be a lot of questions about the spring wheat crop, but with last week’s USDA production estimate, Minneapolis is in a lower trend. The big questions for spring wheat continue to be: how many acres have been abandoned, how are those acres counted, and what is the protein content of this year’s U.S. spring wheat crop. Those concerns extend into parts of the Canadian Prairies.

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