Corn lower ahead of planting projections
Soybeans were mostly lower on spread adjustments after an up and down session, with nearby months up and deferred contracts down. Mexico bought 285,000 tons of new crop beans Monday and there’s more talk of interest from China. Still, only about 2,000 tons of U.S. beans left port last week for China, according to the USDA and overall, the weekly inspection numbers were bearish. Concerns about movement disruptions continue to be an issue for Argentina and Brazil as both nations try to contain COVID-19. 75% of Brazil’s soybean crop has harvested and their prices remain at a discount to U.S. supplies, with China continuing to buy beans from Brazil. Nearby contracts saw late support as traders try to buy some acreage back from corn ahead of widespread U.S. planting. Soybean meal was mixed, following beans, and oil was mostly steady to firm on spread adjustments.
Corn was lower on fund and technical selling. Corn had pressure from crude oil on concerns about global and domestic demand, with the U.S. social distancing order sparked by coronavirus extended through the end of April limiting travel. Corn is also monitoring some of the movement issues in South America, along with weather, development, harvest, and second crop planting conditions. The USDA’s prospective planting report is out Tuesday at Noon Eastern/11 Central. Most analysts are expecting an increase in acreage, but that will depend on the weather. Weekly export inspections for corn and sorghum topped what’s needed to meet USDA projections for the current marketing year. Ethanol futures were mostly lower.
The wheat complex was mixed on spread adjustments. Chicago and Kansas City were mostly firm, while Minneapolis was steady to weak ahead of widespread spring wheat planting. The complex is waiting for Russia to review export policy but the global supply outlook remains bearish. Russia’s currency has dropped, aiding export competitiveness, while their cash prices have surged recently. The USDA’s next set of supply and demand estimates is still scheduled for April 9th, a week from this Thursday. The USDA’s quarterly grain stocks numbers are also out this upcoming Tuesday at Noon Eastern/11 Central. Acreage for all types of U.S. wheat is expected to be about steady with a year ago. The trade is also watching winter wheat conditions as the crop emerges from dormancy. Weekly export inspections were bearish with less than a quarter left in the marketing year. DTN says Algeria is tendering for 50,000 tons of milling wheat.