Market News

Dollar, demand pressure wheat

 

Soybeans were steady to modestly lower. There are continued concerns about Chinese demand and the trade is expecting a big U.S. crop this year. Also, early expectations are for bigger soybean acreage in Brazil. That’s up in the air, however, due to concerns about Brazil’s economy, and the current U.S. Gulf discount to Brazilian export prices. Soybean meal was higher and bean oil was lower on the adjustment of product spreads.

Corn was modestly lower on fund and speculative selling. Crop weather is conducive for development with rain in parts of the Midwest and Plains. Contracts are expected to stay in a sideways pattern ahead of next week’s USDA numbers. Ahead of the numbers, early private estimates have been below the USDA August projections. Ethanol futures were higher. According to the EIA, ethanol production last week averaged 948,000 barrels per day, down 4,000 on the week.

The wheat complex was lower on fund and technical selling, along with the higher dollar. The fundamentals are bearish with a large world supply and slow export demand for U.S. wheat. Japan did buy 62,500 tons of U.S. food wheat, along with 64,300 tons from Canada, and 9,000 tons of U.S. feed wheat. However, those were considered routine purchases. The spring wheat harvest is close to wrapping up in many areas, but may see some delays from rain in the Great Plains.