Market News

Corn, soybeans both see slight recovery

Soybeans were firm on commercial and technical buying, posting a slight oversold bounce. Brazil’s harvest is about 70% complete with generally good conditions in the near term forecast. Even if exports take a hit, domestic demand should stay strong, which should be reflected in the quarterly stocks report on the 31st. Prospective planting estimates are also out Friday. New crop contracts did outgain old crop. Soybean meal was mixed, consolidating, and bean oil was up, following beans. The USDA’s attaché projects Canada’s 2017/18 oilseed crop at 25.3 million tons, up 1% from 2016/17 on increased canola production and generally better yields.

Corn was modestly higher on commercial and technical buying. Corn saw a slight bounce after its recent move to new lows for the year. The USDA numbers Friday should show strong demand and a year to year reduction in U.S. acreage. The reports are out Friday at Noon Eastern/11 AM Central. Corn’s also continuing to watch development conditions in South America. Ethanol futures were higher. China’s top corn producing province of Heilongjiang is expected to reduce planted acreage significantly again this year.

The wheat complex was modestly higher on commercial and technical buying. Winter wheat condition ratings declined in many of the biggest U.S. production states. Forecasts have more rain in the southwestern Plains, which should help parts of those states recover, at least slightly. The supply side of the market is bearish, limiting any real upside. India has resumed a 10% wheat import duty, which had been repealed in December.