Market News

Soybeans, corn, wheat see profit taking

Soybeans ended a wide-ranging session lower on profit taking and technical selling. Contracts made new highs overnight and while they were unable to follow through to the regular session, they did finish above the day’s lows. Weekly export sales were bearish following a big cancellation by unknown destinations. That may or may not have been China. China is slowing down the crush pace due to harvest delays in and shipping delays from Brazil. More harvest delaying rain is on tap for parts of Brazil, while there is some rain in the forecast next week for parts of Argentina. The Buenos Aires Grain Exchange says 15% of Argentina’s soybeans are in poor to very poor shape, up 4% on the week. The International Grains Council estimates global 2020/21 soybean production at 360 million tons, compared to 359 million in January and 338 million for 2019/20. Soybean meal and oil also saw profit taking, but losses in bean oil were limited by solid global vegetable oil demand.

Corn was lower on profit taking and technical selling. Corn export sales were a marketing year low, with Argentina now holding a price advantage over the U.S. Unknown destinations, possibly China, canceled on U.S. corn last week and China is expected to increase their domestic acreage. Corn is also watching conditions in South America, especially the second crop planting delays in Brazil and that rain in the forecast for parts of Argentina next week. The Buenos Aires Grain Exchange says 12% of Argentina’s corn crop is rated poor to very poor, steady with last week. First notice day deliveries against CBOT March contracts are generally expected to be light. The International Grains Council pegs 2020/21 world corn production at 2.216 billion tons, compared to 2.21 billion last month and 2.185 billion last marketing year. Ethanol futures were unchanged.

The wheat complex was lower on profit taking and technical selling. Wheat export sales were a marketing year low, also featuring a cancellation by unknown destinations. U.S. and world weather concerns appear to be on the back burner, including the drought or near drought conditions in the U.S. Plains. Any recent winterkill damage in the U.S., Russia, or Ukraine won’t be known until winter wheat emerges from dormancy. The International Grains Council sees 2020/21 global wheat production at 773 million tons, compared to the January guess of 768 million and the 2019/20 total of 762 million. The USDA’s next set of supply and demand estimates is out March 9^th. DTN says Jordan bought 60,000 tons of optional origin milling wheat, while Taiwan is in the market for 100,000 tons of U.S. milling wheat and the Philippines passed on offers from a tender for 145,000 tons of milling wheat.