Soybeans, corn, wheat mixed ahead of USDA reports
Soybeans were mixed, with nearby contracts up and deferred months down. Most forecasts have continued hot, dry conditions in some western and northern growing areas. The USDA’s condition rating held steady last week and development is ahead of average. There was also continued position squaring ahead of the USDA’s 2021 planted area totals and quarterly grain stocks numbers out Wednesday at Noon Eastern/11 Central. Brazil is reportedly asking China to clarify new national quality standards on soybeans. Beans are also watching the loading and shipping paces out of Argentina, with concerns about low levels on the Parana River restricting movement. Soybean meal was lower and bean oil was higher, adjusting product spreads. Statistics Canada has 2021 canola planted area at 22.479 million acres, up 8.2% from 2020 due to increased demand, with soybeans at 5.321 million acres, 4.9% higher. Canadian canola prices have surged this week on weather concerns for the Canadian Prairies.
Corn was mostly modestly higher. The corn condition rating was down 1%, with the potential for more stress in some U.S. growing areas. The trade will continue watching weather closely as the calendar turns to July, a key month for the crop’s development. A frost/freeze event in Brazil this week is expected to cause further damage to their critical second crop. The USDA’s attaché in Brazil recently cut their outlook by 11 million tons and CONAB’s next guess is scheduled for July 8th. Ethanol futures were unchanged. The U.S. Energy Information Administration’s weekly ethanol production and stocks numbers are also out Wednesday, in addition to the closely watched acreage and stocks numbers from the USDA. Statistics Canada says 2021 corn planted area was 3.47 million acres, down 2.5% from 2020.
The wheat complex was mixed. Minneapolis was pressured by profit taking and overbought signals, even as the spring wheat condition rating dropped with no significant changes to weather forecasts in that region. That includes only limited rainfall in the forecast for the Canadian Prairies. Chicago was mostly weak and Kansas City was mostly firm, watching the slower than average winter wheat harvest, with disease concerns an issue in some growing areas. Statistics Canada says producers planted 16.477 million acres of spring wheat in 2021, 8.1% less than 2020, with Ottawa citing expectations for larger world crop. Durum planted area was 5.531 million acres, 2.8% lower, and winter wheat planted area was 1.349 million acres, a decline of 1.4%, with total wheat planted area at 23.357 million acres, down 6.5% on the year. DTN says Egypt bought 180,000 tons of wheat from Romania and Taiwan reportedly purchased 55,000 tons of U.S. milling wheat.