Market News

Wheat gives back part of recent gains

Soybeans were modestly higher on short covering and technical buying. The U.S. condition rating was down slightly over the past week, primarily on lower ratings in western areas, but some eastern areas also have concerns. Weather forecasts remain mixed, with better conditions in parts of the Midwest and Plains than in other areas. Soybean meal was higher and bean oil was lower on the adjustment of product spreads. The USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central, delayed a day by the holiday.

Corn was modestly lower on profit taking and technical selling. The USDA’s national corn condition rating was up slightly, when many were expecting at least some decline. U.S. development is a little slower than normal, but it still fairly early in the season. Ethanol futures were steady to lower. The U.S. Energy Information Administration says ethanol production for the week ending June 23rd averaged 1.014 million barrels per day, down 1,000 on the week. Stocks came out at 21.571 million barrels, 267,000 less than the week before, the third week in a row with a decline.

The wheat complex was sharply lower on profit taking and technical selling. Contracts were due for some kind of correction after the recent strength and the global supply is a continued bearish factor. The U.S. spring condition rating was down again this week with a lot of quality concerns, for both spring and winter wheat. Japan bought 91,660 tons of U.S. food wheat and Egypt purchased 410,000 tons from an unknown origin. Iraq is tendering for 50,000 tons of milling wheat from the U.S., Australia, and Canada.