Market News

Weather woes support soybeans, corn

Soybeans were modestly higher on commercial and technical buying. The USDA’s national good to excellent rating declined over the past week and a number of states have increasing poor to very poor rating levels. Rainfall this week is expected to be scattered, missing some of the drier areas. Given the weather issues, Tuesday’s finish could be considered a little disappointing. Soybean meal was mostly higher and bean oil was up, following beans. Monday’s NOPA member crush report showed the crush below year ago levels for the fifth consecutive month.

Corn was modestly higher on commercial and technical buying. The USDA’s corn rating was also down on the week and development is slower than average in many key growing areas. Much of the Midwest and Plains are expected to see hot, dry weather over the next week or so. Still, the trade really doesn’t give a whole lot of credence to long term forecasts, especially in summer. Similar to soybeans, poor to very poor ratings also increased last week in some key growing areas. The supply side of the market did limit gains. Ethanol futures were higher ahead of the weekly EIA supply and production numbers.

The wheat complex was mixed with Minneapolis up and Chicago and Kansas City down. The spring wheat crop continues to suffer because of drought or near drought conditions in the northern Plains and Canadian Prairies, which supported Minneapolis. Comparatively, world conditions are good, but parts of Australia could use rain. The winter wheat harvest is 75% complete, sending the winter pits slightly lower. Japan is tendering for 89,443 tons of food wheat from the U.S. and Australia. According to wire reports, Egypt tendered for 60,000 tons of wheat from Russia.