Soybeans, corn extend losses
Soybeans were lower on fund and technical selling. Some dry parts of the Midwest and Plains have seen rain over the past few days, with more possible later this week. Early harvest delays related to Hurricane Ida are expected to be minimal, with the big concern shipping issues caused by damages to port infrastructure. Soybeans, and corn, will need trend line yields or better to limit further price inflation for end users and meet demand projections. The trade is also watching conditions in Argentina and Brazil ahead of planting, with an expected La Nina pattern potentially trimming yields. Brazil is expected to increase planted area to meet demand, especially from China, while Argentina is expected to decrease planted area for beans, moving most of those hectares to corn. Soybean meal was mixed, adjusting spreads, and bean oil was lower, following beans and global vegetable oils. India’s government says it will allow limited imports of 1.2 million tons of GE soybean meal. There were no reported deliveries on September soybeans or meal and only minimal deliveries on bean oil, reflecting the solid demand.
Corn was lower on fund and technical selling. Corn is also watching late development conditions and early harvest activity, while monitoring probable grain movement issues along the lower Mississippi River and shipping delays out of the Gulf caused by damage from Ida. That includes a major elevator, which has handled almost 10% of this year’s corn, soybean, and wheat exports. Ethanol futures were unchanged. The U.S. Energy Information Administration’s weekly ethanol production and supply numbers are out Wednesday. AgRural says 89% of Brazil’s 2020/21 second crop is harvested, while 5.3% of the 2021/22 first crop is planted. DTN says Taiwan bought 65,000 tons of corn from Argentina. There were no reported deliveries of September corn by Tuesday afternoon.
The wheat complex was mixed, consolidating. The spring wheat harvest is 88% complete, with activity expected to wrap up in some areas this week, while winter wheat producers are getting ready for planting. Recent rain has helped conditions for soft red winter, but parts of the hard red and white winter regions will need more precipitation. Statistics Canada’s slightly higher than expected production estimate Monday could be trimmed in that nation’s next set of estimates due in September, which will include August weather conditions. Aside from the U.S. and Canada, the trade is continuing to monitor development conditions and harvest activity globally, especially in Australia, Argentina, Russia, Ukraine, and Europe. New USDA supply, demand, and production numbers are out September 10th. DTN says Egypt bought 120,000 tons of wheat from Romania and 60,000 tons from Ukraine, while Pakistan is tendering for 550,000 tons of wheat and Algeria is in the market for 50,000 tons.