Market News

Soybeans, corn, and wheat give back gains

Soybeans were sharply lower on profit taking and technical selling, giving back a big chunk of Friday’s gains. Weekend weather was generally non-threatening in most areas, with much of the Midwest expected to see a hot, dry pattern most of this week ahead of key development phases. Ahead of the first official production guess of the year, many analysts expect the USDA to raise the 2018 U.S. crop estimate, but there is a long way to go. The USDA reports 47% of U.S. soybeans are blooming, compared to 32% a year ago and the five-year average of 27%, with 11% at the pod setting stage, compared to 6% last year and 4% on average. 71% of U.S. beans are in good to excellent condition, steady with a week ago. Unknown bought 132,000 tons of new crop U.S. beans. According to wire reports, China’s government will reimburse the 25% tariff on U.S. soybeans if the beans go into state reserves. Soybean meal and oil followed beans lower.

Corn was modestly lower on profit taking and technical selling. Corn is also watching growing conditions, with at least some chance for stress in some areas, especially portions of the Midwest where temperatures are not moving below 70 degrees overnight. Also, parts of the north central Midwest are too wet. As of this past Sunday, 37% of U.S. corn is silking, compared to 18% both a year ago and the five-year average, with 75% of the crop rated good to excellent, down 1% from last week. The USDA’s updated supply, demand, and production numbers are out Thursday at Noon Eastern/11 Central and, according to the USDA, the supply and demand report will take tariffs into account. Ethanol futures were lower.

The wheat complex was lower on profit taking and technical selling, in addition to the firm U.S. Dollar index. Wheat is also getting ready for Thursday’s USDA report, which will include a new spring wheat production guess, along with projections for corn and beans. For spring wheat, 81% has headed, compared to 76% last year and 69% on average, with 80% of the crop in good to excellent shape, up 3% on the week. For winter wheat, 63% of the crop is harvested, compared to 65% a year ago and 61% on average. The trade is watching weather in Canada, Europe, and the Black Sea region. DTN says Indonesia bought “about” 250,000 tons of Black Sea origin milling wheat over the past two weeks and Syria purchased 200,000 tons of optional origin wheat.