Market News

Soybeans, corn extend losses

Soybeans were modestly lower on fund and technical selling, unable to follow through on a higher start due to Tuesday’s bearish USDA reports. The USDA is projecting record production this year, with 49% of the crop harvested as of Sunday. Some areas will see near-term harvest delays, with most of the region expected to see a return to more conducive conditions this weekend. China bought 330,000 tons of 2021/22 U.S. beans and unknown destinations picked up 198,000 tons, also for 2021/22 delivery. Those sales, along with oversold signals, helped to limit losses. Chinese customs data says September soybean imports were 6.88 million tons, a decline of 30% on the year with some crush plants idle due to energy restrictions. The trade is also watching early planting conditions in South America, with some rain in the forecast for parts of Argentina. Soybean meal was mostly lower and bean oil was mostly higher, adjusting product spreads. Bean oil had additional support from the recent strength in palm oil. India has reportedly cut its import tax on vegetable oils from 2.5% to zero.

Corn was lower on fund and technical selling. Corn also followed through on those post-USDA report losses, expecting near-term harvest delays in some areas. Parts of the Plains have seen high winds and snow this week, turning into heavy rain as it moved into the Midwest. Weekend conditions look more favorable for most of the region. Unknown destinations bought 161,544 tons of 2021/22 U.S. corn. The USDA’s weekly export sales report is scheduled for Friday morning. South American rainfall continues to favor Brazil over Argentina. The big question for South American crops is the impact of the expected La Nina pattern. Ethanol futures were unchanged. The U.S. Energy Information Administration’s weekly ethanol production and supply numbers are out Thursday.

The wheat complex was lower on profit taking and technical selling. 60% of winter wheat is planted, with rain in the southern Plains expected to help long-term development. The crop will need more though as it heads towards dormancy and parts of Argentina and Russia remain dry. The trade is also watching winter wheat planting conditions in Europe and Ukraine, along with the generally favorable weather in Australia. Tuesday’s USDA numbers were nominally bullish, with multi-year low projections for U.S. and world stocks, but any support tied to the reports ran through the market fairly quickly. If there was a bearish spot, it was a lack of adjustment in production and exports for Russia. Several firms have cut outlooks for Russian production and sales over the last few weeks. DTN says Jordan is tendering for 120,000 tons of optional origin milling wheat.