Market News

Wheat futures turn mostly lower Wednesday

Soybeans closed mixed: higher in the front months, lower in the deferred months. Higher contracts were supported by gains in Brazil’s rèal against the dollar. Crush margins are solid for the time being. There’s talk of new demand from China, although exports are quiet so far this week. Fall pricing is in favor of U.S. soybeans over Brazil, according to DTN, adding that it’s likely USDA won’t change its U.S. crop estimates for either corn or soybeans until after the June 30 acreage report because there is little information to go on at this point.

Corn closed lower Wednesday after rain fell in key growing areas of the Corn Belt. There are parts of the Western Corn Belt that need rain. Weekly ethanol production is up, and stocks are down, which is bullish, but there is not much happening for corn exports. Production and acreage are expected to remain unchanged in Thursday’s USDA supply and demand report. DTN says fundamentally, the corn futures market is bearish, adding that weather will be the key factor for prices this summer.

Wheat was higher for much of the Wednesday session, but ended mostly lower. The forecast is for dry weather in plains and not as much heat this week as the hard red winter wheat harvest moves northward. Bullish for wheat is that Russia is expected to be hot and dry for the next week. Kansas City wheat is at a discount to Chicago on the July contract, while Minneapolis is at a premium.