Market News

Corn, soybeans weak, watching South America

Soybeans were modestly lower on commercial and technical selling. Forecasts have rain in parts of Argentina and Brazil, helping late development, but slowing down harvest and transportation. Harvest activity in both countries is ahead of average. Domestic demand should continue to stay strong, even if export demand takes a hit. Weekly export inspections were neutral to bullish. The USDA’s next set of supply and demand estimates is out March 9th. Soybean meal and oil were mostly lower, following beans. The first notice day for March contracts is Tuesday.

Corn was modestly lower on commercial and technical selling. Corn’s also watching conditions in South America, expecting a very large, if not record crop, out of Brazil. Safras e Mercado has the planting of Brazil’s second crop at 79% complete. The market’s keeping an eye out for any new trade developments with Mexico. Mexico is expected to send a trade delegation to Brazil next month. Weekly export inspections for corn were bullish. Ethanol futures were mostly lower.

The wheat complex was lower on commercial and technical selling, along with the higher dollar. After a cold, or maybe more seasonal, weekend, most of the U.S. winter wheat region should see another warm-up early this week. There are several adages about just how hard it is to kill a wheat crop, so any significant price impact is unlikely. The supply side of the market remains bearish and weekly export inspections were neutral to bearish. Japan is tendering for 120,000 tons of optional origin feed wheat and 113,167 tons of food wheat.