Market News

Wheat finds new buying interest

 

Soybeans were lower on commercial and technical selling, with July beans closing below $10 per bushel for the first time in a few months. There’s been little reported progress in trade talks with China this week, which may be further complicated by new tensions with North Korea. China’s Ag Ministry is projecting an 8.5% increase in domestic bean acreage, mostly at the expense of corn and rice. Export demand continues to be slow, with increased competition from Brazil and recent higher trade in the dollar index against Argentina’s peso and Brazil’s real. Beans are also watching the U.S. planting pace, with many anticipating at least some increase in acreage. Soybean meal and oil followed beans lower. Most forecasts for Argentina have a drier pattern, helping the soybean harvest pick up steam. The USDA’s weekly export sales report is out Thursday at 8:30 AM Eastern/7:30 Central.

Corn was lower on profit taking and technical selling, along with spillover from beans. Most forecasts have generally good planting conditions over the next several days in many key U.S. growing areas, which should allow for good progress ahead of next Monday’s USDA numbers. Corn is also watching trade discussions with China and waiting to see if an updated NAFTA agreement is reached this week. Ethanol futures were lower. The U.S. Energy Information Administration says domestic production last week averaged 1.058 million barrels a day, up 18,000, and stocks were 21.505 million barrels, down 459,000. Many forecasts have much-needed rain for Brazil’s second crop over the next ten days. According to wire reports, 91% of Ukraine’s corn crop is planted.

The wheat complex was higher on commercial and technical buying. The fundamentals remain bearish, but there’s at least some buying interest at these price levels, especially for the higher protein types in Kansas City and Minneapolis. Parts of the Plains are expected to see some much-needed rainfall, with new supply, demand, and production numbers out June 12th. Taiwan bought 83,350 tons of U.S. milling wheat, while Jordan picked up 60,000 tons of optional origin milling wheat and Japan, in sell-buy-sell trade, purchased 17,400 tons of U.S. feed wheat. Argentina’s wheat planting pace will be helped by a drier near-term weather pattern. France’s AgriMer projects wheat exports to other European Union nations at 9.07 million tons this marketing year, the most in more than a decade, with non-EU sales at 8.4 million tons.