Market News

Grains, oilseeds lower ahead of USDA numbers

Soybeans were lower on fund and technical selling. Parts of Argentina got some much needed rain over the weekend, but some areas could use more. Early harvest activity is reportedly underway in parts of Brazil. Both Argentina and Brazil are expected to harvest big crops this year. USDA’s attaché in Argentina currently has production at 58.5 million tons. China’s New Year celebration this week should limit export activity. On average, analysts expect a slight month to month increase in U.S. ending stocks Tuesday. The CME Group temporarily de-listed July, October, and December 2019 soybean meal contracts, exploring changes to contract specifications. Soybean meal and oil futures were lower.

Corn was lower on fund and technical selling, along with spillover from the outside markets. Corn’s also watching weather in South America and getting ready for Tuesday’s USDA supply and demand numbers, out at Noon Eastern/11 AM Central. U.S. ending stocks are expected to be slightly on the month, while the world supply could be a little tighter. Mexico bought 100,000 tons of 2015/16 U.S. corn. Ethanol futures were lower. The USDA attaché in Ukraine reports 2015/16 corn production was 23.2 million tons, more than 18% below 2014/15.

The wheat complex was lower on fund and technical selling. The fundamentals are bearish and that should be reflected in those new USDA numbers. U.S. ending stocks should be above a month ago, while the world number could be just about unchanged to a little smaller. Solid domestic commercial demand did limit losses. Japan is tendering for 146,000 tons of food wheat from the U.S., Canada, and Australia. The USDA attaché in Ukraine reports 2015/16 wheat production was 27.2 million tons, the biggest crop since independence was achieved in 1990.