Market News

Weather expectations send corn, soybeans lower

Soybeans were lower on commercial and technical selling. Beans hit more than nine month lows, watching the weather, expecting generally non-threatening near term conditions in most of the Midwest. Weekly export numbers were neutral to bearish. Total sales remain ahead of the USDA’s expected pace, but the market’s seeing an impact from record South American production and the trade’s wary about potential record U.S. production. The USDA’s new acreage estimates are out Friday, June 30th. Soybean meal and oil followed beans lower.

Corn was lower on commercial and technical selling, ending the day near the session’s lows. Corn’s also watching the weather and while there are some areas of concern, in the aggregate, conditions look good for a lot of the Cornbelt. Weekly export sales and shipments were bullish with U.S. corn still priced competitively. The USDA’s quarterly stocks update is out June 30th. The USDA’s attaché in Mexico raised its 2016/17 corn production estimate to 27.4 million tons because of good growing weather, while lowering the import outlook, because of the higher domestic production. Ethanol futures were lower.

The wheat complex was mixed, with Chicago down, Minneapolis up, and Kansas City mostly steady to weak. Recent rainfall in the northern Plains helped some of the spring crop, but some has probably been lost, and winter wheat harvest results have been variable. Weekly export numbers were bullish. Japan bought 69,961 tons of U.S. food wheat, along with 34,680 tons from Australia and 31,106 tons from Canada. Egypt purchased a total of 175,000 tons of wheat from Romania and Ukraine.