Soybeans, corn end marketing year with losses
Soybeans were lower on fund and technical selling. Traders exited positions ahead on the final day of the 2022/23 marketing year and ahead of the holiday weekend. Markets are closed Monday for Labor Day. On the positive side of things, hot, dry weather is a continued concern in parts of the Midwest and Plains, and China bought 132,000 tons of new crop U.S. beans Thursday morning. That brought the three-day sales total to 694,000 tons, all to either China or unknown destinations, which could turn out to be China when it’s time for delivery. Old crop sales last week were a net cancellation, while new crop sales were above a million tons for the fifth week in a row, primarily to China and unknown destinations. The USDA’s updated supply and demand estimates September 12th will include a new look at yield, along with an update on planted area totals. Soybean meal and oil followed beans lower. New crop soybean meal sales were decent as the U.S. picks up some of the market share following the smaller crop in Argentina.
Corn was lower on fund and technical selling. Traders were preparing for the new marketing year, even with concerns about possible late season stress in parts of the Midwest. It’s less of a factor for corn than beans at these stages, but the heat in the forecast would lower test weights, especially if it remains dry into mid-month, and speed up maturity. Export sales have been slow, but demand for new crop is showing signs of improving. Old crop sales of corn last week fell sharply and were under the average, Colombia and Spain topped the list with significant switches from unknown, but new crop was solid at just under a million tons. The main new crop buyers were Mexico and unknown destinations. The trade is also monitoring the tail end of Brazil’s second crop harvest with new numbers from CONAB out September 6th.
The wheat complex was mostly lower. First notice day deliveries against Chicago and Kansas City September contracts were heavier than expected. Wheat remains in a downtrend, with pressure from the bearish export sales pace. Last week’s U.S. sales were below the prior week and lower than average, with China and the Philippines taking the top slots. The was also a small amount purchased by unknown destinations for 2024/25 delivery. Weather concerns for Argentina and Australia are largely viewed as a non-issue, for now. The trade is also keeping an eye on shipping out of the Black Sea region as Russia’s war on Ukraine continues. The timing of India’s expected wheat purchases is an ongoing question mark.