Market News

Soybeans, corn weak on profit taking

Soybeans were modestly lower on profit taking and technical selling. It was an up and down day for beans following the gains after Friday’s bearish USDA numbers. The USDA raised production, yield, and domestic ending stocks estimates last week. Still, that ending stocks projection remains on the tight side of things ahead of widespread harvest activity. U.S. weather generally looks dry this week aside from rain in northern and southern portions of the growing area. The USDA says 57% of U.S. soybeans are in good to excellent condition, unchanged on the week, with 38% of the crop dropping leaves, compared to the five-year average of 29%. Unknown destinations bought 132,000 tons of 2021/22 U.S. beans, pushing the announced total for the month to 758,000 tons, most of that to China. The USDA’s export inspections report showed the continued effects of trade disruptions in southern Louisiana following Hurricane Ida. The weekly total was less than a tenth of the year ago numbers, primarily to China and Mexico. Beans are also watching conditions ahead of widespread planting in South America and the anticipated La Nina pattern, which could limit yield potential. Argentina’s government has reportedly reached a deal with a company to dredge the Parana River, a main artery for transportation to ports, due to the lowest water levels in decades. Soybean meal was up on commercial buying, while bean oil was mixed on bull spreading.

Corn was modestly lower on profit taking and technical selling. Corn also gave back some gains, while watching U.S. development weather and harvest conditions. As of Sunday, 58% of U.S. corn is called good to excellent, 1% lower, with 87% of the crop dented, compared to 81% on average, 37% mature, compared to 31% typically in mid-September, and 4% harvested, just behind the five-year average of 5%. Most forecasts have rainfall this week in dry parts of Argentina and Brazil, aiding crops during the early planting stages. Both of those nations are expected to increase planted area this year to meet expected global demand. Brazil is also trying to make up for some of the shortfall from the much smaller than anticipated old second crop. U.S. export inspections were under both a week ago and a year ago, with most of the weekly total to Mexico, followed by much smaller amounts to Taiwan, Hong Kong, and the Dominican Republic. Ethanol futures were unchanged. Russia’s Ag Ministry says corn exports from the start of the marketing year July 1^st through September 9^th were 100,000 tons, a drop of 63.9% from the same period a year ago.

The wheat complex was mixed, with Chicago and Minneapolis down in the nearby months and up in the far-off deferred contracts and Kansas City firm. The U.S. spring wheat harvest is officially over as winter wheat planting moves forward. For winter wheat, 12% of the crop is planted, compared to 8% on average. The trade didn’t have much of a reaction to tighter U.S. and world wheat ending stocks projections. The USDA’s updated wheat production estimate is out on the 30^th, along with quarterly grain stocks. The next production guess for Canada is out later this week. Russia’s Ag Ministry says wheat exports from July 1^st to September 9^th were 6.7 million tons, a drop of 21.6% on the year. Russia’s grain prices moved higher last week, sending their export tax higher. Coceral estimates the European Union soft wheat crop at 143.4 million tons, 2.5 million below the last guess. The trade is also monitoring harvest activity in Ukraine, along with conditions in Argentina and Australia. DTN says Saudi Arabia bought 382,000 tons of wheat from an unspecified origin. Export inspections were up on the week, down on the year, mainly to Mexico and the Philippines.