Corn, soybeans, wheat end week in the red
July 23, 2021 By John Perkins Filed Under: Closing Futures / Livestock Briefs, Crops Markets, Market News
Soybeans were lower on fund and technical selling, cementing the weekly losses. Beans were watching the weather, with spillover from bean meal, which has recently been pressured by concerns about feed demand from China. That’s also slowed down soybean imports by China. Brazil is still expected to supply the lion’s share of beans until either their supplies run out or U.S. supplies start to hit the market. The U.S. crop is still up in the year, with the crop starting to enter key development phases. Carryout margins through next marketing year are historically tight. The new marketing year for beans starts September 1st. Mexico bought 100,000 tons of new crop U.S. soybeans. Mexico’s Ag Markets Consulting Group says that nation bought a record 4.502 million tons of soybeans during the first half of the year, up 15.5% on the year, including 2.585 million tons from the U.S. Soybean oil was up on oversold signals and condition concerns for Canada’s canola crop.Corn was lower on fund and technical selling, ensuring a lower weekly finish. Most forecasts have more hot, dry weather in western parts of the growing region, with scattered rain in other portions. Stress is likely in those areas, but some of the crop will see near ideal conditions. Corn will need a trend-line or better yield to meet demand expectations. The USDA’s next set of crop progress and condition numbers is out Monday afternoon at 4 Eastern/3 Central. Mexico’s Ag Markets Consulting Group says corn purchases during the first half of 2021 were 9.996 million tons, 16.4% above a year ago, with nearly all of that from the U.S. DDG purchases were 1.067 million tons, 25% above year ago levels. The trade is also watching yield results from the second crop harvest in Ukraine. Ethanol futures were unchanged.The wheat complex was lower on fund and technical selling, with losses at all three U.S. exchanges. Minneapolis was keeping an eye on light rain in some spring wheat growing areas, with better, but still limited chances into the coming week, including parts of the Dakotas, Minnesota, and Canada. Chicago and Kansas City were down, watching winter wheat harvest activity and global crop conditions. That includes dry weather in parts of Russia and recent flood damage in portions of the European Union, along with conditions in Australia. Ukraine’s Ag Ministry says 30% of the winter wheat crop is harvested. Mexico’s Ag Markets Consulting Group says wheat imports during the first half of the year were record large at 2.697 million tons, 18.2% above a year ago. Most of that was from the U.S., with smaller amounts from Canada and Argentina.
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