Market News

Grains, oilseeds lower ahead of USDA numbers

 

Soybeans were lower on fund and technical selling. Soybeans were watching the good harvest progress and squaring up for Friday’s USDA reports. Most analysts expect a slightly lower production estimate and tighter ending stocks. The reports are out at Noon Eastern/11 AM Central. Soybean meal and oil followed beans lower. Unknown destinations bought 20,000 tons of 2015/16 U.S. soybean oil.

Corn was lower on fund and technical selling. Corn’s also watching the good harvest progress, with warm, dry weather in most of the region. That should allow producers to not only catch up to the average, but get ahead. Friday, the USDA is also expected to reduce corn production and ending stocks numbers. There’s a pretty wide range of estimates for the production guess. Ethanol futures were lower.

The wheat complex was lower on fund and technical selling. Contracts were overbought after the recent gains. Even if wheat’s considered to be a good value around current price levels, there’s plenty of wheat available globally and export demand for U.S. wheat is slow. Weekly export numbers were bearish, with slow sales and decent shipments. Large parts of Australia and the Black Sea region are expected to stay dry over the near term. Japan bought 68,100 tons of food wheat from Canada, 30,700 tons from the U.S., and 20,300 tons from Australia.