Soybeans see profit taking, corn and wheat consolidate
October 16, 2020 By John Perkins Filed Under: Closing Futures / Livestock Briefs, Crops Markets, Market News
Soybeans were lower on profit taking and technical selling, cementing a lower weekly finish. Most forecasts had at least some rain in parts of South America and generally good U.S. harvest conditions. Still, there are uncertainties about rainfall coverage and totals for Argentina and Brazil that won’t be answered until after the event and planting has been delayed, likely leading to increased reliance on U.S. beans by China into early 2021. Reports say Brazil wants to temporarily waive import fees for soybean and corn imports from outside of the Mercosur trading bloc. Stateside, U.S. harvest activity is expected to keep moving at a quick pace in much of the region, with occasional rain delays. Unknown destinations bought 391,150 tons of 2020/21 U.S. beans, bringing the announced weekly total to 916,150 tons, and the weekly numbers were bullish at 96.7 million bushels in sales with solid shipments. Soybean meal and oil were lower, following beans.Corn was mixed, consolidating after the recent run to multi-year highs, posting a good week to week gain. Still, December corn did hit a new high for the year prior to sagging slightly and saw its highest close for the year. December through July 2021 were all above to close above $4. Mexico bought 128,000 tons of 2020/21 U.S. corn Friday and the weekly numbers were neutral to a little bullish as sales backed off from the previous week but remain ahead of the USDA’s projection. Just over a month into the marketing year, sales have been better than expected with an announced weekly total of 658,000 tons, with about two thirds of that purchased by China. China has already passed the USDA’s estimate for 2020/21 imports, but most of that still needs to be shipped. Corn was also watching planting conditions in South America, especially the soybean delays in Brazil which will push back second crop corn planting, and U.S. harvest weather. Ethanol futures were higher.The wheat complex was mixed, with Chicago up and Kansas City and Minneapolis mostly weak. December contracts were all able to finish higher, including more new highs in Chicago and Kansas City, as world weather issues provide continued support. Ukraine has recently received some rain, but large parts of Russia remain dry and dry weather is also an issue in portions of Argentina and the U.S. Plains. Parts of the European Union are expected to see a drier weather pattern, which is expected to speed up winter wheat planting. The USDA’s next set of supply, demand, and production numbers is out November 9th. Weekly export numbers were neutral with sales unchanged on the week. DTN says Japan bought 87,710 tons of food wheat from the U.S. and Canada and South Korea picked up 65,000 tons of U.S. food wheat, while Pakistan purchased 340,000 tons of wheat from an unknown origin.
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