Market News

Soybeans lead the way down on light exports

Soybeans closed lower on rainfall in southern Brazil. January beans closed 28 and three quarter cents lower at $13.27 and three quarters, March beans ended the day 30 and a quarter cents lower at $13.38 and a half. Brazil’s forecast shows another chance of rainfall next week, but the hot, dry pattern is expected to mostly continue in southern Brazil and Argentina.  U.S. soybean processing margins remain favorable, but a lack of export sales news continues to be bearish for the complex. January soybean meal closed $1.80 lower at $413.60 and soybean oil closed 85 points down at $55.85. The weekly soybean sales have been marked at under 525,000 metric tons of old beans, a marketing year low, and 75,000 tons of new beans.

Corn futures closed lower on a below average weekly export total from the USDA. March corn closed nine and a half cents lower at $5.96, and May corn closed 10 cents lower at $5.96 and three quarters. The USDA’s weekly corn export total came in at 921,000 metric tons, down 16 percent on the week. Mexico and China were the biggest destinations for U.S. corn, each purchasing around 278,000 metric tons. USDA says old crop corn sales of more than 1.2 million metric tons is up 27 percent on the week but still below average. Overnight rainfall in dry parts of South America and a lack of export sales. The U.S. Energy Information Administration put out a bullish ethanol report for last week that could limit some of the bearish weather pressure in the market.

Wheat traded lower on the day with low net exports. March Chicago closed eight cents lower at $7.79 and three quarters, March Kansas City closed 11 and three quarter cents lower at $8.12 and three quarters, and March Minneapolis closed 17 and a half cents lower at $9.91 and a half. Wheat sales of 199,500 metric tons for this marketing year were down 53 percent on the week. But exports of 335,000 were up 76 percent on the week with Japan, Mexico, and Colombia as the biggest buyers. Weather concerns and Australian harvest numbers. The value of the dollar is keeping wheat trade below the top of its range for the day. Remerging drought conditions in the plains could be bullish for the wheat complex moving forward.