Market News

Soybeans settle at more than one year highs

Soybeans were higher on commercial and technical buying, closing at more than one year highs and just under the session’s tops. Weekly export inspections weren’t great, but remain on pace to meet the USDA’s estimate for the marketing year. Beans are starting the month off watching harvest weather in Argentina, with some of the crop definitely lost. Most forecasts have warmer, drier weather this week in the Midwest, which should allow farmers to catch up after last week’s rain delay. As of Sunday, 8% of soybeans are planted, compared to 3% a week ago, 10% a year ago, and the five year average of 6%. Soybean meal was sharply higher and bean oil was lower on the adjustment of product spreads by commercials. There have been heavy deliveries on May oil, light deliveries on beans, and no deliveries for meal. The USDA says March’s soybean crush was 166 million pounds, up 11 million from February and a little larger than expected.

Corn was mixed, with May and July steady and new crop firm on commercial spread adjustments. Corn’s also watching weather in the Midwest, with many getting back in the fields after last week’s delays. The USDA says 45% of corn is planted, compared to 30% last week, 45% last year, and 30% on average. 13% of the crop has emerged, compared to 8% typically this time of year. There have been no deliveries posted against the May contract. Ethanol was mixed with nearby months down. In Brazil, the state of Goias lowered its corn production estimate from 8.2 million tons to 5.1 million. According to Argentina’s government, first quarter 2016 corn exports were double first quarter 2015 following Buenos Aires’ ending of the export tariff. According to the USDA, corn for fuel alcohol consumption in March was 431 million bushels, up 2% on the month, but down 2% on the year.

The wheat complex was mixed. Nearby Chicago contracts were lower on the heavy deliveries against the May contract, which also pressured Kansas City. Minneapolis was up on a lack of deliveries. A major wheat tour gets underway this week with some reports of stripe rust in Kansas and Missouri. For winter wheat, 42% of the crop has headed, compared to 34% on average, and 61% is rated good to excellent, up 2% on the week. For spring wheat, 54% is planted, compared to 42% a week ago, 69% a year ago, and 39% on average. 22% of spring wheat has emerged, a little slower than last year, but ahead of the five year average. Saudi Arabia purchased 620,000 tons of wheat from unknown and Thailand bought 55,000 tons of optional origin feed wheat. During the first quarter of 2016, U.S. millers ground 224.2 million bushels of wheat, 5% below the fourth quarter of 2015.