Market News

Weather forecasts support soybeans, corn

Soybeans were higher on speculative and technical buying, closing near the middle of the day’s range. Recent rainfall has helped parts of the Midwest, but has missed some areas, and weather is expected to turn mostly dry. Unknown bought 264,000 tons of U.S. beans, 198,000 for delivery this marketing year and 66,000 tons for next marketing year. Soybean meal and oil were higher, following beans. The International Grains Council sees 2017/18 world soybean production at 345 million tons, down 3 million on the month, because of a lower U.S. production estimate.

Corn was modestly higher on speculative and technical buying. Corn’s also watching the weather, expecting more rain over the next couple of days, ahead of that forecasted drier pattern. Weekly export numbers were neutral to bearish. Old crop exports were a new marketing year low, which was not a total surprise given record South American production, but shipments were solid. Ethanol futures were higher. The International Grains Council expects 2017/18 world corn production to be 1.020 billion tons, 5 million under last month’s guess, with the IGC citing dry conditions in parts of the U.S.

The wheat complex was higher on speculative and technical buying. Spring wheat yield estimates continue to come in below last year because of drought in the northwestern U.S. Plains. The ongoing tour isn’t official, but is providing a preview of what the next set of USDA numbers could hold. Weekly export numbers were neutral. Egypt issued a new tender for an unspecified amount of milling wheat. The IGC has 2017/18 world wheat production at 732 million tons, 3 million lower than a month ago, on the potential for lower U.S., Canadian, E.U., and Australian production.