Market News

Profit taking pressures corn

Soybeans were mostly lower with nearby contracts down on profit taking and spillover from bean meal. Most forecasts have improving planting weather in the Eastern Midwest and better harvest conditions in Argentina. 73% of U.S. soybeans are planted and 45% have emerged, both ahead of average. Unknown destinations bought 213,000 tons of U.S. beans, with 73,000 tons for this marketing year and 140,000 tons for next marketing year. Soybean meal was lower and bean oil was higher on the unwinding of product spreads. Reuters says Brazilian soybean shipments are expected to be down 20% in June.

Corn was lower on profit taking and technical selling. Contracts saw a slight correction after last week’s new seven month highs, watching the tail end of planting. 94% of corn is planted, compared to the five year average of 92%, and 78% has emerged. In the first rating of the season, 62% of corn is rated good to excellent. 120,000 tons of old crop U.S. corn was switched from unknown to Taiwan. Ethanol futures were higher. According to wire reports, Brazil state Mato Grosso’s state ag institute lowered its corn production outlook by 8% to 21.24 million tons because of weather issues. Mato Grosso is Brazil’s top grain producing state.

The wheat complex was lower on fund and technical. The U.S. winter and spring crops are both in great shape and the fundamentals are bearish. Weather in the Plains may have caused some damage, but the extent may not be known for a while. For winter wheat, the USDA says 63% of the crop is in good to excellent shape, up 1% on the week and way above a year ago, and 84% has headed. For spring wheat, 79% is rated good to excellent, up 3% on the week, planting has ended and 88% has emerged. The 2016/17 marketing year for wheat starts June 1st.