Market News

Corn, soybeans, wheat focusing on supply

Soybeans were lower on commercial and technical selling. Harvest conditions look generally good for much of the region most of the week. The USDA reports 68% of soybeans are dropping leaves, compared to the five year average of 64%, and 10% is harvested, compared to 13% on average. 73% of U.S. beans are in good to excellent shape, unchanged on the week. Unknown bought 240,000 tons of 2016/17 U.S. soybeans, following up on last week’s purchases by unknown and China. It appears as though the market’s more focused on expected record production than on expected record demand. Soybean meal and oil were lower, following beans.

Corn was lower on commercial and technical selling. Corn’s also watching the weather and while part of the U.S. crop has been lost recently, the total amount of loss won’t be known for a while. As of Sunday, 97% of U.S. corn has dented, compared to 96% on average, and 73% is mature, compared to 64% typically this time of year. 15% has been harvested, compared to 19% normally. USDA’s quarterly grain stocks report is out Friday and could show a slight year to year increase. Ethanol futures were higher.

The wheat complex was lower on speculative and technical selling. Forecasts have winter planting delays in some areas, but the rain will help recharge soil moisture. Export demand’s good, reflected in this week’s inspections report, but there’s a lot of wheat available. 30% of this year’s winter wheat crop is harvested and 8% has emerged, both matching the respective five year averages. India, which recently lowered wheat import duties from 25% to 10%, bought 25,000 tons of wheat from Australia.