Market News

Soybeans down on weather, profit taking

Soybeans were lower on profit taking and technical selling after last week’s run to new multi-week highs. The trade’s expecting generally good late development and early harvest weather, with a record or near record crop. The USDA reports 10% of U.S. soybeans are harvested, compared to the five year average of 12%, and 63% are dropping leaves, matching the normal pace. 60% of U.S. beans are in good to excellent condition, up 1% on the week. Strong demand should continue to limit losses, with another bullish week for export inspections. Soybean meal and oil followed beans lower. According to wire reports, farmers in Argentina are holding back beans ahead of Buenos Aires instituting a lower tax. Forecasts have more rain headed for parts of Brazil.

Corn was fractionally higher on short covering and technical buying, along with the firm move in wheat. Corn’s also watching the weather ahead of the weekly crop progress numbers and while yields have been varied, the trade expects a big crop. The USDA’s quarterly grain stocks update is out Friday and new supply, demand, and production numbers are out October 12th. As of Sunday, the USDA says 11% of corn is harvested, compared to 17% on average, 93% has dented, compared to 95% normally, and 51% is mature, compared to 64% usually this time of year. 61% of the U.S. crop is rated good to excellent, unchanged from a week ago, but with 1% moving from good to excellent. Ethanol futures were higher. China’s General Administration of Customs says Beijing bought 380,000 tons of corn in August, with imports cheaper than domestic supplies. According to wire reports, 40% of Argentina’s corn crop is planted. Planting activity has varied, depending on rainfall.

The wheat complex was higher on commercial and technical buying. The trade’s watching drier than normal conditions in parts of Australia and South America, which could eventually lead to new export demand for U.S. wheat. Minneapolis led the way on expectations for comparatively better demand for higher protein varieties of wheat. Forecasts have beneficial rainfall in parts of the U.S. Plains in the next few days. The USDA says 24% of winter wheat is planted, compared to 28% on average. The USDA’s new small grains production estimates are out Friday, along with quarterly stocks.