Market News

Soybeans mostly lower, corn down, watching South America

Soybeans were mostly lower on commercial and technical selling. The trade’s expecting record South American production, with generally good conditions in most areas. Near term rainfall should cause some harvest delays in Brazil but those delays are expected to be minor and damage should be limited. Some new private estimates from Brazil this week have production topping 110 million tons. China bought 120,000 tons of new crop U.S. beans. The USDA’s attaché in China expects soybean imports to continue to rise, with 2016/17 at 86 million tons and 2017/18 at 89 million. Soybean meal was lower and bean oil was higher, adjusting product spreads.

Corn was lower on commercial and technical selling. Corn’s also watching conditions in South America with longer term outlooks showing beneficial pollination weather for Brazil’s second crop. Weekly ethanol production has averaged more than a million barrels a day for 21 weeks in a row. Ethanol futures were higher following those weekly EIA numbers. The USDA’s attaché for the Philippines estimates 2016/17 corn production at 8.1 million tons, up from the last guess because of better weather, and 2017/18 at 8.3 million tons with some producers switching from rice to corn. Corn imports are expected to decrease on that higher domestic production.

The wheat complex was lower on commercial and technical selling. The supply side of the market is bearish and forecasts have rain in dry parts of the Plains. Saudi Arabia bought 120,000 tons of old crop U.S. hard red winter wheat with weekly export sales out Thursday at 8:30 AM Eastern/7:30 AM Central. The USDA’s attaché expects wheat imports by the Philippines to rise this and next marketing year because of increased population, improved economics, and the relatively low prices. The attaché in Egypt has 2016/17 wheat imports at 11 million tons, down from the USDA’s current guess on issues with Egypt’s currency. 2017/18 imports are seen at 11.5 million tons.