Market News

Soybeans, corn down expecting better harvest weather

Soybeans were lower on fund and technical selling. Crop progress numbers are expected to show a slow harvest last week, but conditions this week are expected to be better. As of Sunday, 94% of U.S. soybeans are dropping leaves, compared to the five year average of 93%, and 49% of the crop is harvested, compared to 60% on average. 61% of beans are in good to excellent shape, unchanged from a week ago. Demand continues to be a positive, as unknown destinations bought 227,300 tons of 2017/18 U.S. beans Monday. The National Oilseed Processors Association says member firms crushed 136.419 million bushels in September, less than what analysts were expecting. Soybean meal and oil followed beans lower. AgRural says 12% of Brazil’s soybean crop is planted, slower than last year, but close to the five year average. Markets in Argentina were closed for a public holiday, with business resuming Tuesday. China’s National Grain and Oil Information Center expects soybean imports to reach 110 million tons in 2022.

Corn was lower on fund and technical selling, in relatively light volume. Corn is also expecting improved harvest progress this week, with generally warm, dry weather expected in many areas. The USDA reports 90% of U.S. corn has reached maturity, compared to 94% normally this time of year, and 28% is harvested, compared to 47% typically. 65% of corn is in good to excellent shape, up 1% from last week. Commercial interest is a factor at these prices, but export demand has slowed, with U.S. prices at the Gulf above Brazil’s port prices and another bearish week for export inspections. Planting conditions in South America are mixed, generally too dry in parts of Brazil, too wet in parts of Argentina. According to wire reports, China’s top corn growing province of Heilongjiang has lowered its subsidy in an attempt to lower corn acres because of ample domestic stocks. Ethanol futures were lower. The USDA’s attaché in Ukraine says 20% of that nation’s corn crop is harvested, with a projected total of 27.2 million tons.

The wheat complex was lower on fund and technical selling, in low trade volume. Recent rainfall in winter wheat growing areas delayed planting, but will be beneficial as the crop heads towards dormancy. According to the USDA, 60% of this year’s U.S. winter wheat crop is planted, compared to the usual pace of 71%, and 37% has emerged, compared to 43% on average. Losses are limited by commercial demand at these price levels. Algeria is tendering for 50,000 tons of milling wheat and Mali is in the market for 15,000 tons of hard red winter. The USDA’s attaché in Ukraine says the wheat harvest has ended, with a total of 26.6 million tons.