Market News

Soybeans, corn lower, watching weather

Soybeans were lower on speculative and technical selling. Parts of the Midwest and Plains are expected to see more moderate temperatures and beneficial rainfall during the first part of the week. That’s not going to break drought conditions in some areas, but is welcome. The USDA says 57% of U.S. soybeans are in good to excellent shape, down 4% on the week. 69% are blooming and 29% have reached the pod setting stage, both 2% ahead of their respective five year averages. Soybean meal and oil followed beans lower. The USDA’s first field based production estimate of the season for beans and corn is out August 10th, along with prevent plant numbers and new supply and demand projections.

Corn was modestly lower on speculative and technical selling. Corn is also watching the weather, especially those chances for rainfall, which could still miss drier parts of the Plains and Midwest. Conditions are also expected to be generally conducive for development in early planted corn in the Delta and southeast. As of Sunday, the USDA says 62% of U.S. corn is rated good to excellent, 2% lower than last week, with 67% of the crop silking and 8% at the dough making stage, both slower than normal. Unknown destinations bought 135,000 tons of new crop U.S. corn, limiting losses. Ethanol futures were mixed, mostly firm. AgRural says 50% of Brazil’s second corn crop is harvest, a little ahead of last year.

The wheat complex was lower on speculative and technical selling. The trade is watching the tail end of the U.S. winter harvest, along with spring wheat conditions as a major crop tour is set to get underway this week. For winter wheat, 84% is harvested, compared to 80% on average. Forecasts remain hot and dry for the northwestern Plains, but the overall fundamental outlook for wheat remains bearish and Minneapolis was due for a correction. For spring wheat, 33% of the crop is in good to excellent condition, down 1%, and 96% has headed, compared to 94% usually this time of year. Algeria is tendering for 50,000 tons of optional origin milling wheat. In addition to the U.S. Plains, there are weather concerns in the Canadian Prairies and Australia, but on the balance, world weather looks good, for now, for wheat production.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!