Market News

Weather woes support corn, soybeans, wheat

Soybeans were higher on commercial and speculative buying. Parts of the Midwest saw very heavy rainfall over the weekend, with more expected later this week. There’s some sentiment some areas may not be able to plant beans this year, but it is very early to really start that discussion. Weekly export inspections were bullish. As of Sunday, 10% of U.S. beans are planted, compared to 7% a year ago and the five year average of 7%. Soybean meal and oil followed beans higher. According to the USDA, March’s soybean crush was 160 million bushels, up 9 million on the month, but down 6 million on the year.

Corn was higher on commercial and speculative buying. Corn’s also watching the weather with flooding and colder temperatures in many areas following the weekend storms. The weekend weather might cost corn some acres. The USDA says 34% of U.S. corn is planted, compared to 43% last year and 34% on average, and 9% has emerged, compared to 12% a year ago and 8% typically this time of year. Ethanol futures were firm. The USDA reports corn ground for alcohol in March totaled 515 million bushels, up 9% on the month and 5% on the year. Most of that, 460 million bushels, was for fuel alcohol. The Buenos Aires Grain Exchange projects 2017/18 corn production for Argentina at a record 39 million tons.

The wheat complex was higher on commercial and speculative buying. Flooding and heavy rain more than likely damaged some of the U.S. winter crop and parts of western Kansas received snow ahead of a major crop tour this week. For winter wheat, 54% of the U.S. crop is in good to excellent shape, unchanged on the week, and 42% is headed, compared to the usual pace of 34%. For spring wheat, 31% is planted, compared to 52% a year ago and 46% on average, and 9% has emerged, compared to the five year average of 17%. The USDA says wheat ground for flour during the first quarter of 2017 was 224 million bushels, down 4% on the quarter and slightly below the first quarter of 2017. The durum grind was 17.0 million bushels, 7% lower than last quarter, but 2% higher than last year. Israel bought 30,000 tons of optional origin feed wheat. According to the Buenos Aires Grain Exchange, 2017/18 wheat production for Argentina could hit 16.65 million tons.