Market News

Soybeans up, corn down, waiting for USDA numbers

Soybeans were modestly higher on commercial and technical buying. Demand continues to be strong with new USDA supply and demand projections out Thursday. The first field based production numbers of the season, prevent plant figures, and weekly export sales are also all out Thursday. The USDA’s national good to excellent condition rating was up 1% on the week and U.S. development is a little ahead of average. Soybean meal was lower and bean oil was higher on the adjustment of product spreads. China’s Ministry of Customs says soybean imports for July were a new monthly record at 10.08 million tons, up sharply on both the month and the year.

Corn was modestly lower on profit taking and technical selling. The USDA’s national good to excellent rating was down 1% and development is a little slower than average. Illinois’ good to excellent rating lost 5% on the week, but the U.S. poor to very poor rating did hold. Forecasts for this week have generally moderate temperatures and scattered rainfall in many key growing areas. That rain will probably miss some of the drier areas, but the trade’s still expecting a big crop at this point. Ethanol futures were lower ahead of the weekly U.S. Energy Information Administration production and stocks data.

The wheat complex was mixed with Chicago and Kansas City down and nearby Minneapolis up, all on commercial and technical activity. The USDA’s spring wheat good to excellent rating improved a little, but some of that crop has been lost. The spring and winter wheat harvest paces are both close to normal. The spring wheat harvest made a big week to week jump, either an indication of very strong progress or widespread abandonment. Japan is tendering for 147,380 tons of food wheat from the U.S., Australia, and Canada, and Bahrain is in the market for 25,000 tons of wheat.