Market News

Soybeans, corn lower ahead of USDA numbers

Soybeans were lower on commercial and technical selling. Beans were overbought and some forecasts have a better chance of rain in Argentina, while conditions in Brazil generally look good. Demand continues to be strong. Weekly export numbers were bullish, unknown bought 136,000 tons of 2016/17 U.S. beans and South Korea bought 20,000 tons of 2016/17 bean oil. Soybean meal and oil followed beans lower. On average, analysts expect the USDA to lower U.S. ending stocks slightly Friday, while also making minor adjustments to South American estimates.

Corn was lower on commercial and technical selling. Corn was also overbought and watching conditions in South America. Ahead of Friday’s supply and demand report, mostly analysts expect at least a slight increase in the USDA’s domestic ending stocks projections, along with minor adjustments to South American production. The report is out at Noon Eastern/11 AM Central. Ethanol futures were lower. South Korea bought 332,000 tons of 2016/17 optional origin corn. All or part of that will be U.S. origin.

The wheat complex was higher on short covering and technical buying. The supply side of the market is bearish, but traders are reluctant to sell off too much further. Recent cold temperatures may have damaged the winter crop in the Plains, but it will be a long time before the extent of the damage, if any, is known. The average guess for Friday’s USDA supply and demand report has a slightly lower U.S. wheat ending stocks estimate. Japan is tendering for 123,000 tons of food wheat from the U.S. and Canada, along with 17,000 tons of food wheat from Australia and Canada. Saudi Arabia is in the market for 715,000 tons of wheat.