Market News

Soybeans weak on profit taking

 

 

Soybeans were modestly lower on profit taking and technical selling. Forecasts have more crop weather issues in South America, but contracts were unable to hold onto the periodic gains and consolidated after hitting multi-month highs Wednesday. USDA expects U.S. soybean planting to be around 90 million acres, below most average pre-report estimates, with an average price of $9.25 per bushel for the 2018/19 marketing year. The USDA’s Ag Outlook Forum ends Friday. Soybean meal was mixed, consolidating, and soybean oil was down on profit taking. Unknown destinations bought 110,000 tons of U.S. soybeans, 55,000 each for 2017/18 delivery and 2018/19. The International Grains Council lowered its 2017/18 global soybean production outlook to 347 million tons, down 1% on the year, on a smaller crop in Argentina, but increased carryover on reduced consumption.

Corn was modestly higher on commercial and technical buying. Corn was also watching conditions in South America, with probable yield loss in Argentina southern Brazil, along with second crop planting delays in central Brazil. The USDA also expects 2018 U.S. corn acreage to be around 90 million acres, a little bit more than what many analysts were expecting. The USDA’s prospective planting report is out March 31st. Ethanol futures were higher. The U.S. Energy Information Administration says last week’s average daily ethanol production was up on the week, while stocks declined. Unknown destinations bought 130,000 tons of 2017/18 U.S. corn. The International Grains Council projects 2017/18 world corn production at 1.048 billion tons, down slightly on the month and 2% less than last year, with lowered expectations for Argentina, Brazil, and South Africa. The trade outlook was up slightly, while consumption was unchanged and carryover was down.

The wheat complex was modestly higher on speculative and technical buying. Chicago was up on the potential for flooding in the eastern Midwest, Kansas City was supported by mostly dry forecasts for the western Plains, and Minneapolis was firm to modestly higher ahead of spring wheat planting. USDA has wheat planting up modestly on the year at 46.5 million acres, with an average price for 2018/19 of $4.70 per bushel. The upside for the complex remains limited by the large global supply, but around half of that is owned by China and not available for trade. The International Grains Council projects 2017/18 wheat production at 757 million tons, unchanged from the last guess and up slightly from 2016/17. Trade and carryover were unchanged, while consumption was down slightly.