Market News

Weather forecasts send soybeans sharply lower

Soybeans were sharply lower on speculative and technical selling. Forecasts for this week have generally moderate temperatures and increased chances of rainfall in a big chunk of the Midwest and Plains. The USDA’s national good to excellent rating improved over the past week, when many had been expecting at least a slight decline. Soybean meal and oil were lower, following beans. The USDA says the June soybean crush was 154 million bushels, down 4 million from May and unchanged from June 2016. Analysts were expecting a crush of about 147 million bushels. The Southern Oscillation Index continues to look neutral, neither El Nino or La Nina. FC Stone projects U.S. soybean production at 4.235 billion bushels with an average yield of 47.7 bushels per acre.

Corn was lower on speculative and technical selling. Corn’s also watching the weather, with development close to average and a slight decline in the condition rating. Colombia bought 100,000 tons of new crop U.S. corn, the second day in a row with a sale, putting the two-day total at 250,000 tons. Ethanol futures were lower ahead of the weekly EIA production and stocks numbers. According to the USDA, corn consumed for alcohol and other uses during June was 490 million bushels, down 4% on the month, but up 2% on the year, with 437 million bushels of the monthly total designated for fuel alcohol use. FC Stone estimates 2017 U.S. corn production at 13.590 billion bushels with an average yield of 162.8 bushels per acre.

The wheat complex was lower on speculative and technical selling. This year’s U.S. winter wheat harvest is very close to wrapping up and rain in the southwestern Plains will help recharge soil moisture ahead of planting. The spring wheat rating was down, as expected. Japan is tendering for 132,295 tons of food wheat from the U.S., Australia, and Canada. The USDA reports the second quarter 2017 wheat grind for flour was 224 million bushels, essentially steady with both the first quarter and with the second quarter of 2016. According to Allendale, Egypt is considering increasing its annual wheat import quota to bolster stocks.