Market News

Soybeans, corn down on lack of export confirmation

Soybeans were modestly lower on profit taking and technical selling. The initial round of trade discussions with China ended with talk of more new export sales, but no confirmation because of the current shutdown of the federal government. Weekly export inspections next Monday could start to provide some clues. Reports out of the meeting were generally positive and there have been reports China has committed to buying more U.S. ag goods, with Cabinet level meetings expected to occur later this month. Beijing did approve five GMO products that could signal a willingness to make some concessions. The trade is also watching South American weather, with most near-term forecasts for Brazil showing beneficial rainfall against drier longer-term outlooks. Soybean meal and oil were weak, following beans.

Corn was modestly lower on profit taking and technical selling. Corn is also watching South American weather and waiting for any new news about trade negotiations. Trade talks between the U.S., the European Union, and Japan are set to start Wednesday and there have been more unconfirmed rumblings about China buying U.S. corn. Ethanol futures were lower. The U.S. Energy Information Administration’s weekly ethanol production and stocks report is out Wednesday. The industry continues to be concerned about margins and potential delays in the implementation of year-round E15 use. U.S. ethanol, DDGS, and sorghum are also on the potential purchase list by Beijing.

The wheat complex was mixed, with Chicago and Kansas City modestly higher and Minneapolis mostly steady to fractionally lower. There’s also talk of China buying U.S. wheat, but the shutdown has limited export news. Winter wheat planting is expected to be lower than a year ago, but that report, originally scheduled for this Friday, has been pushed back indefinitely by the partial closure of the federal government. Delays were especially prevalent in the southern U.S. Plains and could lead to a 100-year low in planted area for Kansas. New supply and demand estimates, along with 2018 corn and soybean production totals, were also initially out on the 11th. Tunisia is in the market for 100,000 tons of durum, Algeria is looking for 50,000 tons of milling wheat, and DTN says there are several other open wheat tenders.

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