Market News

Soybeans, corn down on profit taking

Soybeans were lower on profit taking and technical selling. Unknown destinations bought 192,000 tons of 2016/17 U.S. beans and the weekly numbers were bullish. The big story for beans continues to be that strong demand against expected record production. Soybean meal and oil were lower, following beans. According to Allendale, a brokerage in Brazil estimates 24% of new crop beans have been sold, compared to 40% a year ago, citing the relative strength of Brazil’s Real against the dollar.

Corn was lower on profit taking and technical selling. The USDA is also expecting record corn production and near term harvest conditions generally look good in many areas. The weekly export numbers were neutral, with strong sales and slow shipments. Ethanol futures were steady to lower. China has announced a five year plan to increase soybean acreage at the expense of corn. Beijing is shooting for reductions of 0.7% per year.

The wheat complex was mostly lower on commercial and technical selling. The USDA’s expects record wheat supplies, but export demand has been good. Sales are 30% ahead of last year’s pace and unknown bought 114,000 tons of 2016/17 U.S. soft white wheat. The exceptions were a couple of nearby Minneapolis months, supported by commercial buying. Japan bought 75,000 tons of U.S. wheat, along with 29,000 tons from Australia and 28,000 tons from Canada. India purchased 100,000 tons of Australian wheat. Egypt is tendering for 55,000 to 60,000 tons of wheat from Russia.