Market News

Soybeans up, corn down, but both reacting to weather

Soybeans were higher on short covering and technical buying. Parts of the Midwest have received rain this week, but that precipitation has missed some areas, including eight counties in Iowa that are now in extreme drought conditions. The trade still seems to expect a record crop, with new USDA estimates out September 12th. Weekly export numbers were neutral to bullish. Soybean meal and oil were up, following beans. The USDA says China bought 165,000 tons of optional origin soybeans for 2017/18 delivery. All or part of that will be U.S. beans.

Corn was modestly lower on commercial and technical selling. Corn’s also watching the weather, expecting rain in some areas, drier conditions in others, and a chance of much warmer temperatures next week. However, the trade’s still expecting a big crop, even with that extreme drought moving into parts of central Iowa. Weekly export numbers were bullish with just a couple of weeks left in the marketing year. Ethanol futures were lower. According to wire reports, Brazil’s government and army are undertaking a joint venture to fully pave a major road that would allow increased access to ports in northern parts of the nation. Record soybean and corn production this year in Brazil has led to a lack of storage space, so increased access to ports would be welcome.

The wheat complex was mixed, mostly lower. Chicago and Kansas City were down with on the recent soil recharging rain in winter wheat growing areas, with December contracts hitting new lows. Minneapolis was mixed, with nearbys down and deferreds up, on consolidation and production uncertainties about this year’s spring crop. The global supply and demand outlook remains bearish, limiting any real upside, at least for now. Egypt bought 295,000 tons of wheat from Russia and 60,000 tons from Ukraine, and Tunisia purchased 100,000 tons of optional origin wheat. Saudi Arabia is tendering for 480,000 tons of optional origin wheat.