Soybeans, wheat lower heading into the end of the week
Soybeans closed lower, pressured by fund selling ahead of next week’s Supply and Demand report. Soybean oil and soybean meal were both lower on Thursday. Private estimates for the soybean crop are surfacing with yields ranging from 49 to 50 bushels per acre. The good to excellent rating for soybeans dropped while poor to very poor conditions jumped 3 points from the previous week. Weather remains a concern as the extended forecast has little rain. Export sales are out on Friday, delayed a day due to Monday’s holiday.
Corn was narrowly mixed. There’s a lot of attention on next week’s report, especially focusing on yields. Private estimates are anywhere from 171.5 to 175 bushels per acre. But the hot, dry weather throughout much of the Corn Belt could have a serious impact on totals. U.S. corn exports have been extremely sluggish, and Brazil remains a better buy for customers like China. CONAB raised Brazil’s corn production. Ethanol production saw a very nominal change last week, but inventory was steady.
The wheat complex was lower on fund selling with additional pressure from the higher US dollar. Russia continues to attack ports in Ukraine and continues to dominate the global wheat market. Weather issues in Argentina and Australia and possible quality issues in the European Union continue to be monitored and while it should provide support, the trade is shrugging it off.