Market News

Grains, oilseeds gain after USDA numbers

Soybeans were higher on commercial and technical buying. The USDA tightened the old crop balance sheet, while raising new crop ending stocks on a larger production estimate. The average bushel per yield projection held steady and while the crop’s in good shape, there’s a very long way to go this growing season. Brazil’s soybean production figure was also down on the month, but Argentina was left unchanged. Soybean meal and oil followed beans higher.

Corn was higher on commercial and technical buying. Old crop ending stocks were down, with bigger new crop stocks on an increased U.S. production estimate. Corn’s in very good condition overall for this time of year, but there are some areas of concern and the crop’s in a key phase of development. The USDA’s corn production guess for Brazil was lowered, while Argentina’s was raised. Ethanol futures were higher.

The wheat complex was mostly higher. As expected, U.S. ending stocks were up on the month, but world stocks were down slightly. The winter wheat production estimate is up 8% on the year with a record expected average yield. The spring wheat production guess was down on the year with a lower acreage total. Japan is tendering for 180,700 tons of food wheat from the U.S., Australia, and Canada.