Market News

Mostly good conditions send soybeans, corn lower

Soybeans were lower on commercial and technical selling. The USDA’s national crop report showed most U.S. soybeans in good shape and developing faster than average. Unknown destinations bought 126,000 tons of new crop U.S. beans, following up on Monday’s purchase of 393,000 tons, but for now, it looks like the trade may be more focused on the record production estimate than the record demand estimate. Soybean meal and oil followed beans lower.

Corn was lower on commercial and technical selling, with December hitting a new contract low. The spot contract also notched an almost seven year low. The USDA’s national crop progress numbers were also bearish for corn. Near term, development weather looks good in most areas and longer term outlooks are also non-threatening. Ethanol futures were lower. The first notice day for September CBOT grain contracts is Wednesday.

The wheat complex was mixed with Chicago and Kansas City down on commercial selling and Minneapolis wheat up on commercial buying. Contracts are oversold, but the fundamentals remain bearish, especially on the supply side. Pre-planting conditions for winter wheat in the Plains look good, but early talk is that planting may be limited by the low price. Japan is tendering for 144,400 tons of wheat from the U.S. and Canada. According to Allendale, Egypt is adopting a 0.0% tolerance on ergot in wheat imports. The accepted world standard is 0.05%.