Market News

Supply pressure sends soybeans, corn lower

Soybeans were lower on speculative and technical selling. Harvest conditions in South America generally look good, with a drier pattern for Argentina, and U.S. planted area should be a new all-time high. That acreage number could climb if corn planting delays continue. Demand is expected to stay strong and could limit losses, but for now, supply is beating out demand. The USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 AM Central. Soybean meal was lower and bean oil was higher on the adjustment of product spreads.

Corn was lower on speculative and technical selling. Forecasts have more rain in the Midwest and even a potential freeze in northern parts of the region. It’s still pretty early in the process, but this will be a bigger issue if it persists into May. Corn’s also watching South America, especially the development and impending harvest of Brazil’s second crop. The USDA’s next crop report is out Monday at 4 PM Eastern/3 PM Central. Ethanol futures were lower following the bearish EIA stocks number. Stocks were up 235,000 barrels on the week, despite a week to week decline in production.

The wheat complex was mixed. Weather in the Northern Plains and Canada has slowed down spring wheat planting, supporting Minneapolis, and rain could damage some of the winter crop. A major winter wheat crop tour in the Plains starts next week and there’s some uncertainty about quality and the potential for increased wheat feeding because of low prices and wildfire related pasture loss. South Korea bought 135,000 tons of optional origin feed wheat and Tunisia picked up 67,000 tons of optional origin milling wheat.

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