Soybeans gain on new sale to China
June 2, 2020 By John Perkins Filed Under: Closing Futures / Livestock Briefs, Crops Markets, Market News
Soybeans were higher on commercial and technical buying. China bought 132,000 tons of new crop U.S. beans, despite reports Monday Beijing had ordered a pause in purchases from the U.S. China is also reportedly buying beans from Brazil as a hedge against the current political tensions with the U.S. over Hong Kong, coronavirus, and questions about purchases under the Phase One trade agreement. As of Sunday, 75% of this year’s crop is planted with some areas expected to wrap up in the next few days. Barcharts currently projects a yield of 48.8 bushels per acre. The USDA’s next set of supply and demand numbers is out June 11th. Soybean meal and oil followed beans higher. Oil had additional support from the higher overnight move in palm oil and higher trade in crude oil. Corn was modestly higher on short covering and technical buying. 93% of corn is planted, with the USDA’s acreage totals out on the 30th, along with quarterly stocks. Near-term weather looks mostly non-threatening to favorable for planting and development. The first estimate of the season from Barcharts pegs corn yield at 172.4 bushels per acre. Ethanol futures were mixed. The U.S. Energy Information Administration’s weekly ethanol production and supply numbers are out Wednesday. Corn is also contending with questions about domestic livestock feed demand. Taiwan is reportedly tendering for 65,000 tons of corn from the U.S, Argentina, Brazil, or South Africa. The trade is monitoring second crop corn planting in Brazil and the potential for export disruption because of COVID-19. The wheat complex was lower on fund and technical selling. The winter wheat harvest is just getting underway and should be aided by prevailing near-term weather conditions with 51% of the crop rated good to excellent, down 3% on the week. Spring wheat planting had a good week to week advance and could wrap up soon in parts of the northern Plains. The trade is also watching the spring planting pace in Canada and conditions in the European Union. 28% of the winter wheat crop in central Argentina has been planted. DTN says Egypt is tendering for 60,000 tons of wheat and Jordan is in the market for 120,000 tons of milling wheat. Ukraine’s Ministry of the Economy projects 2020/21 wheat production at 23.2 million tons with exports of 14.9 million tons, both down from 2019/20.
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