Market News

Solid export demand supports soybeans

Soybeans were higher on commercial and technical buying. China bought 246,000 tons of new crop U.S. beans, continuing the recent streak of new sales. Development conditions generally look good in most areas. As of Sunday, 72% of U.S. beans are rated good to excellent, unchanged on the week. 91% have reached the pod setting stage, compared to the five year average of 88%, and 69% are setting pods, compared to 61% on average. Soybean meal and oil followed beans higher.

Corn was modestly higher on commercial and technical buying. Corn’s also watching the weather, expecting fairly good conditions in most of the Cornbelt this week. The U.S. condition rating was down 2% to 74% good to excellent. 97% of the crop is silking, compared to 94% typically this time of year, 53% is at the dough making stage, compared to 42% on average, and 9% is denting, compared to 12% normally. Mexico bought 162569 tons of new crop U.S. corn. Ethanol futures were higher.

The wheat complex was mixed with nearby Chicago firm, Kansas City down, and Minneapolis up. Near term forecasts have more dry weather for already dry parts of the spring wheat region, supporting Minneapolis. The fundamentals remain bearish, especially on the supply side, but there’s at least some commercial support near the recent lows. For winter wheat, 94% is harvested, compared to 91% on average. For spring wheat, 30% is harvested, well ahead of the usual pace, and 68% is rated good to excellent.