Market News

Soybeans, corn down, expecting record crops

Soybeans were lower on commercial and technical selling. The USDA’s projecting a record crop and after the recent hot streak, export demand may have cooled down. Soybeans are keeping an eye on the soon-to-end private crop tour in the Midwest. Weekly old crop shipments were slow, but new crop sales, for the week ending August 18th, were more than 71 million bushels. Soybean meal and oil followed beans lower. The International Grains Council raised its 2016/17 soybean production estimate 4 million tons to 325 million, which would be up 3.3% on the year.

Corn was lower on commercial and technical selling. The USDA’s expecting a record corn crop and development conditions mostly look good. Old crop corn shipments were also slow and weekly new crop sales topped 41 million bushels. The market’s watching the tail end of the private Midwestern crop tour. Ethanol futures were lower. The IGC now pegs 2016/17 corn production at 1.030 billion tons, 13 million more than in July and 61 million above 2015/16.

The wheat complex was lower on commercial and technical selling. Spring wheat harvest conditions are mostly good and there’s rain in the forecast for parts of the winter wheat region. The large available supply continues to be the big negative factor and while export demand is improving, the Black Sea region crop looks good and prices are competitive. The IGC currently has 2016/17 wheat production at 2.069 billion tons, 23 million more than a month ago and up 69 million from a year ago.